The Bank of Queensland in Australia have banned the use of home equity to buy any leveraged products or trading cryptocurrencies. This bans comes after government alerts people to remain cautious about investing in cryptocurrency on credit because it is very risky.
The Bank have also updated their loan terms and condition to match this decision, no onwards any loan purposal that include use and acquisition of cryptocurrency will be denied. Property owner used to take home loan against their property and use it to trade or invest in cryptocurrencies. Bank suspect many have invested in crypto during 2017 price boom and now are in heavy loss.
Although Banks or Financial institution claims they don’t monitor where the borrower spend the borrowed money but according to one expert in the field they are now going through each client to figure out whether they have invested in crypto or not. Recently ATO (Australian Tax Office) announces they are going after crypto holders who are trying to invade taxation and according to ATO many investors who bought at peak price during 2017 surge are still holding their coins and haven’t cashed out. They might be holding those coins even at loss because according to taxation rule in Australia investors will get 50% discount on taxation if they will hold coins for more than 1 year.
According to ATO they are using latest Data-Matching technology to monitor crypto holders with the help of different financial institution of a country along with growing number of countries with which they have data sharing agreement.