Crypto users in Australia continue to face significant banking barriers when dealing with stock exchanges and other crypto companies. A recent survey conducted by Binance, which polled 1,900 Australians, found that 58% of respondents desired seamless access to deposit methods on exchanges without restrictions, while 22% had changed banks to facilitate easier cryptocurrency purchases.
Matt Poblocki, General Manager of Binance’s Australian and New Zealand operations, emphasized the importance of unrestricted access to financial services in fostering participation, trust, and confidence in the market. He noted that the lack of consistent access not only hinders users but also poses the risk of driving activity offshore to less regulated environments, which ultimately benefits neither consumers nor the broader financial system.
Crypto Exchange Users in Australia Face Ongoing Banking Barriers
Despite years of regulatory progress, the obstacles posed by banks to crypto exchanges in Australia persist. In 2018, crypto exchanges were brought under anti-money laundering laws, which required registration with the Australian Financial Intelligence Agency. More recently, the country’s first stock market fund to hold Bitcoin (BTC) directly was introduced in June 2024, followed by an ETF that owned Ether in October 2024.
Crypto exchanges, including Coinbase and OKX, have also introduced services for self-managed superannuation funds in Australia, offering new avenues for crypto involvement in the country’s retirement system. However, the CEO of OKX Australia, Kate Cooper, highlighted that banks often prevent transfers to crypto exchanges, citing her experience with traditional funds and now as the head of a crypto exchange.
Debanking and Its Impact on Crypto Adoption
Debanking, the practice of banks cutting off access to services for individuals and organizations deemed high-risk, has been a significant challenge for crypto companies in Australia. Jonathon Miller, General Manager of Kraken for Australia, noted that the exchange has seen customers and employees lose access to their accounts due to their involvement with the crypto ecosystem. This creates concentration risks, as local exchanges and startups often have limited banking options.
Matt Poblocki of Binance also reported instances of debanking, stating that the exchange continues to maintain alternative on-ramps and off-ramps while working towards more sustainable solutions. Cooper emphasized that suitable operational legislation is crucial in ending crypto banking barriers, referring to a draft law expected to be published soon.
Legislative Solutions for Crypto Banking Blocks
The Australian government has proposed a new crypto framework that regulates exchanges and addresses debanking. The Ministry of Finance outlined four priorities for its new crypto regulations in March. Clear laws and official guidelines are essential in addressing debanking and ending restrictions in the crypto industry, according to Miller.
Poblocki also stressed the need for cooperation between the government, banks, and industry stakeholders to ensure regulatory clarity. He believes that clear official instructions, combined with joint efforts from stakeholders, are the best way to resolve debanking issues. As the crypto industry in Australia continues to evolve, the need for legislative solutions to banking barriers becomes increasingly pressing.
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