How to Buy Bitcoin with NAB

Key Takeaways

• NAB allows Australian customers to fund crypto exchanges using bank transfers, PayID, debit cards, credit cards and other payment options.
• In response to rising crypto scams, NAB has introduced new restrictions from July 18, 2023, blocking transactions to high-risk exchanges to better protect its customers.
• NAB imposes a $10,000 monthly limit on crypto-related payments to regulated exchanges, which resets at the beginning of each calendar month.

How to Buy Bitcoin and Crypto with NAB

NAB customers looking to buy Bitcoin or other cryptocurrencies can use their bank account to transfer AUD to trusted exchanges like CoinSpot. The bank allows transactions to platforms that adhere to anti-money laundering (AML) and know-your-customer (KYC) protocols as regulated by the Australian Transaction Reports and Analysis Centre (AUSTRAC).

Below is a step-by-step guide on how to invest in digital assets using your NAB account.

1. Create and Verify Account

Begin by setting up an account on CoinSpot and completing the necessary identity verification. This process is mandatory under AUSTRAC’s AML and counter-terrorism financing (CTF) regulations. For this step, you’ll need the following details:

• Full Name (or Company Name if registering a business account)
• Valid Government-Issued ID (such as a Passport or Driver's License)
• Email Address
• Phone Number

This verification is essential for anyone intending to trade or invest in cryptocurrencies using a National Australia Bank account.

2. Deposit AUD from NAB

After your CoinSpot account is verified, you can deposit funds to start trading. Go to the Deposit Funds section and choose from one of the available payment methods, such as PayID, direct bank transfer, or credit/debit cards.

It’s important to note that NAB has recently introduced protections to block transfers to certain high-risk exchanges. If your transaction is flagged or declined, you will be notified. However, CoinSpot is not on this list and transfers from NAB accounts are accepted.

3. Purchase Cryptocurrency

Once the funds have been successfully added to your CoinSpot account, head to the trading dashboard to choose the token you wish to buy. Whether it’s Bitcoin, Ethereum, or another asset, simply enter the amount you'd like to purchase and confirm your trade by selecting “Buy.”

The cryptocurrency you purchase will be stored in your CoinSpot wallet, from where you can track its performance or transfer it to an external wallet for added security.

NAB’s Policy on Crypto Transactions

NAB has introduced specific measures to manage cryptocurrency transactions, aiming to protect its customers from scams and fraud. Below is an overview of NAB’s crypto payment policy and what it means for account holders.

NAB Crypto Policy Updates

• $10,000 Monthly Limit: NAB imposes a limit of $10,000 per calendar month on payments directed to cryptocurrency exchanges.
• Transaction Block on High-Risk Exchanges: Starting from July 18, 2023, NAB has implemented a policy to block payments to exchanges it classifies as high-risk.
• Payment Decline Notifications: If a transaction to a flagged exchange is blocked, NAB users will receive a notification via their banking app or internet banking showing the payment as “Rejected”.
• No Hold on Withdrawals: Customers remain free to withdraw funds from crypto platforms back into their NAB accounts without any added restrictions.
• Separate Limits for Joint Accounts: For joint accounts, NAB applies the $10,000 monthly limit separately to each account holder, ensuring that both parties retain their individual crypto payment limits.

These policies are part of NAB’s ongoing commitment to enhance customer security in the cryptocurrency space.

Best Deposit Methods for NAB Bank

If you're looking to fund your crypto account using NAB, the most efficient methods are PayID and direct bank transfers. These options are fast, free of charge, and allow you to get started with as little as $1. Below is an overview of CoinSpot’s supported payment methods:

• PayID & Direct Bank Transfers: No fees are applied to these transactions, and they offer generous daily limits, up to $100,000 for direct transfers and $20,000 for PayID.
• Cash Deposits: Available at specific locations, cash deposits come with a 2.5% fee, allowing up to $8,000 per day.
• Card Payments: Using a NAB debit or credit card to deposit incurs a 1.88% fee, with a daily limit of $1,000.
• PayPal: If your NAB account is linked to PayPal, you can deposit funds with a 0.5% fee, with a daily maximum of $5,000.

When withdrawing funds, both PayID and direct transfers back to your NAB account are free of charge. However, PayPal withdrawals carry a 2% fee, capped at $1.25.

Conclusion

NAB offers Australian investors several convenient ways to fund their crypto accounts. Payments to exchanges are subject to a $10,000 monthly limit, and NAB actively monitors transactions to high-risk exchanges as part of its fraud prevention efforts. Withdrawals from crypto platforms back into NAB accounts remain unrestricted.

It's important to stay informed about any updates to NAB’s policies to ensure that your crypto transactions continue to align with both the bank’s guidelines and Australian regulations.