How to Buy Bitcoin with Commonwealth Bank

Key Takeaways

• CommBank allows Australian investors to fund crypto exchanges through bank transfers, PayID, debit cards, and other approved methods.
• Deposits to crypto exchanges are capped by CBA at $10,000 per calendar month.
• A 24-hour hold is applied to all crypto-related deposits to exchanges, which is designed to reduce fraud risks.

How to Buy Bitcoin and Crypto with Commonwealth Bank

Australian investors can buy Bitcoin and other cryptocurrencies through Commonwealth Bank by transferring AUD to approved local exchanges like CoinSpot. CommBank allows transfers to platforms that meet the strict AML/KYC standards set by the Australian Transaction Reports and Analysis Centre (AUSTRAC).

Below is a quick breakdown of how to invest in digital assets using your CBA account.

1. Create and Verify Account

Create an account on CoinSpot and verify your identity. To do this, you will need to provide information to open your account, which includes:

• Full Name (or Company Name if a Business)
• Valid Government-Issued ID (e.g. Passport or License)
• Email Address
• Phone Number

This step is essential due to AUSTRAC’s strict anti-money laundering (AML) and counter-terrorism financing (CTF) rules. It's mandatory for anyone using an Australian bank to verify their identity in order to invest in cryptocurrency.

2. Deposit AUD from CommBank

Once you have completed your account verification, head to the deposit funds page. You can transfer AUD from CommBank using PayID, direct deposit, or a card deposit. PayPal is another option for those who have linked their CBA card to the PayPal platform.

To do this, simply select a deposit method and follow the on-screen prompts to complete your transaction.

3. Purchase Cryptocurrency

When your funds arrive in your account, navigate to the CoinSpot trading dashboard and find the cryptocurrency you want to buy.

After you select the coin (e.g. Bitcoin), input your desired investment amount and select “Buy” to execute your trade.

CommBank’s Policy on Crypto Transactions

CommBank has rolled out new measures targeting cryptocurrency transactions to clamp down on fraud and scams. Here’s a quick breakdown of what’s changed and why it matters.

CBA Crypto Policy Changes

• $10,000 Monthly Limit: You can only send a maximum of $10,000 per month across all accounts to cryptocurrency exchanges. This cap is to protect customers from potential scams.
• 24-Hour Payment Hold: Payments to crypto exchanges could be delayed for up to 24 hours before they go through, giving the bank time to check for any fraud risk.
• Payment Declines: If you try to exceed the $10,000 monthly limit, your transaction will be blocked, and you’ll be notified via NetBank, email, SMS, or the CommBank app.
• Withdrawals Not Affected: While payments are restricted, withdrawals from cryptocurrency exchanges back to your CommBank account are not impacted unless the exchange has limitations.
• Applies Across Accounts: The $10,000 limit applies to the total across all your CBA accounts.

These measures might change, so it’s worth monitoring any updates to Commonwealth Bank’s cryptocurrency policy.

Best Deposit Methods for Commonwealth Bank

When topping up your crypto account using Commonwealth Bank, your best bet is PayID or Direct Deposits. They're instant and free, with a minimum deposit of just $1. Here are CoinSpot’s supported payment options:

• PayID & Direct Deposits: Zero fees with a $100,000 daily limit for direct deposit and $20,000 for PayID.
• Cash: 2.5% fee and a daily limit of $8,000.
• Card: 1.88% fee with a limit of $1,000 per 24hr.
• PayPal: 0.5% fee with a daily limit of $5,000.

For withdrawals, PayID and direct deposits are free, while PayPal withdrawals come with a 2% fee (capped at $1.25).

Conclusion

CommBank offers Aussie investors several ways to fund crypto exchanges, with PayID and direct deposits being the most affordable options. Deposits are capped at $10,000 per month, with a mandatory 24-hour hold to curb fraud. Withdrawals aren't restricted, so getting your funds out is easy.

Keep an eye on any policy updates to ensure your crypto investments stay compliant with CommBank and Australian financial regulations.