Crypto debanking may force industry underground Australian Treasury.
The Australian Treasury Department has expressed concern about the growing trend of banks in Australia cutting services to cryptocurrency companies. They believe that this could have negative consequences, such as reducing transparency in the industry. Debanking, which occurs when a bank refuses to provide services to a customer, citing issues like anti-money laundering and reputational risk, is a significant problem. The Treasury acknowledges that there is a lack of data on debanking practices, making it difficult to develop effective policy responses. They emphasize the importance of data to monitor and address this issue. The Treasury also encourages banks to communicate their requirements to crypto services providers and work closely with regulators to ensure the implementation of agreed-upon recommendations. The largest Australian bank, CBA, recently announced restrictions on payments to crypto exchanges due to scam risks, while Westpac banned customers from transacting with Binance crypto exchange. The Treasury suggests that the four major banks in Australia should publish guidance applicable to crypto exchanges. The Australian Treasury is taking steps to protect the local crypto industry and is working closely with regulators, banks, and affected sectors to address these concerns.