Buying Bitcoin and Other Crypto Via Commonwealth Bank (CBA)

How to buy Bitcoin with the Commonwealth Bank: Cryptocurrency and the standard Australian bank are still trying to work each other out. So understanding how to engage with your bank when buying Bitcoin or other crypto is pivotal. As of 2024, Commonwealth Bank of Australia does provide a conduit for Australians to delve into Bitcoin investment through CoinJar.

Although, this process is a little fraught with limitations. So here's what you need to know about how to buy Bitcoin or other crypto in Australia.

This guidance is for people with a Commonwealth Bank account, and using CoinJar.

If you try to use crypto exchanges that are offshore or who have had problems with regulators, like Banxa and Binance, then Commonwealth bank (or these platforms) are not for you.

Create a CoinJar account

Begin by signing up for a crypto exchange account on CoinJar, the platform facilitating Bitcoin purchases with Commonwealth Bank.

Download the CoinJar app and complete the registration process. Personal details such as full name, email address, phone number, and a valid government-issued ID are required for identity verification, aligning with AUSTRAC regulations.

Depositing funds from Commonwealth Bank

After setting up your CoinJar account, fund it by depositing funds from Commonwealth Bank. You can do this using various methods like credit/debit card, PayPal, PayID, or bank transfer. PayID is recommended for its seamless transaction experience without deposit fees.

Purchasing Bitcoin with Commonwealth Bank

Once your CoinJar account is funded, proceed to purchase Bitcoin through the platform. Selecting Bitcoin or any other digital asset you are interested in. Navigate through the app, select the “buy/sell” tab, input the desired purchase amount, and confirm the transaction after reviewing all details.

Understanding Commonwealth Bank’s crypto policies

The "big four" banks in Australia have differing policies when it comes to crypto exchanges. They all have been limiting their customers from moving money onto crypto exchanges. They claim that this is because there are many scams around. However other people think that their policies could be because crypto and DeFi in general are competitors to the banking industry.

Recent updates include limitations on payments to certain cryptocurrency exchanges, capped at $10,000 per calendar month per account. And this is the policy of the Commonwealth Bank, at the time of writing.

Tax implications

Cryptocurrency transactions in Australia are subject to capital gains tax (CGT). Taxpayers must report realised gains or losses on their annual tax returns, emphasising the need for meticulous transaction records.

Conclusion: Buying BTC and crypto with the CBA

In conclusion, purchasing Bitcoin in Australia using Commonwealth Bank, facilitated by CoinJar, is not a difficult process. However if you want to move more than $10,000 per month onto a crypto exchange, the CBA is not the best choice of bank.