Australia takes action on de-banking of crypto entities and supports policy recommendations to address the issue.

Australia’s Treasury has acknowledged the seriousness of de-banking and understands that taking no action could lead businesses to operate covertly after instances of banking partners severing ties with crypto platforms in the country.

In the same announcement, the Treasury has also supported most of the previous advice from the Council of Financial Regulators (CFR) on de-banking, which could bring about changes for entities involved in cryptocurrencies.

Recently, Australia has witnessed the Commonwealth Bank (CBA) implementing partial restrictions, citing “scams and the amount of money lost by customers,” while Binance Australia has suspended Australian dollar (AUD) deposits and withdrawals via bank transfer due to a decision made by a third-party payment service provider.

Last year, the CFR provided the government with four recommendations on potential policy responses to de-banking.

The Australian government “agreed” to the recommendation of data collection and “supported” the recommendation for all banks to implement measures to enhance transparency and fairness regarding de-banking.

The government also supported the recommendation for Australia’s four major banks (Commonwealth Bank, National Australia Bank, ANZ Bank, and Westpac) to publish guidance applicable to digital currency exchanges.

The government’s decision to clarify its stance on de-banking comes shortly after Blockchain Australia, the country’s industry body, made a new commitment to minimizing the overlap between crypto-assets and scams. They plan to collaborate with payment providers and banks to prevent scams, utilizing innovative technology to do so.

Blockchain Australia’s commitment follows a “Stopping Scams Roundtable” that included 28 representatives and observers from the Australian Securities and Investments Commission (ASIC) and Treasury. Earlier this month, the organization denounced the de-banking of cryptocurrency platforms and announced plans to hold a roundtable discussion on the issue.

Read More: Australia’s Crypto Industry Body Denounces Recent Banking Restrictions

Edited by Parikshit Mishra.