Australia is ‘Serious’ About the De-Banking of Crypto Firms

Paigambar Mohan Raj
Source: Newcastle Herald

Australia’s Treasury declared on Wednesday that it understands the gravity of de-banking companies. The treasury added that it recognizes delay would push firms underground. The move is in light of cases in which banking partners have disconnected from crypto platforms in the country.

The decision by the government to clarify its stance on de-banking comes only hours after Blockchain Australia renewed its pledge to reduce scams. Moreover, the development followed reports of Binance Australia receiving only 24 hours of notice before de-banking. Binance Australia stopped accepting Australian dollar (AUD) deposits and withdrawals by bank transfers.

Will crypto firms undergo any change in Australia?

According to the announcement, the Treasury has accepted most of the advice from the Council of Financial Regulators (CFR) on de-banking. The recommendations could affect change for crypto-related companies. The government received four recommendations from the CFR last year regarding possible de-banking policy measures.

The proposal that all banks take steps to increase openness and fairness in connection to de-banking was “supported” by the Australian government. The government also “agreed” to the recommendations about data gathering. Furthermore, the government agreed with the suggestion that Australia’s four biggest banks release guidelines for digital currency exchanges. The Commonwealth Bank, National Australia Bank, ANZ Bank, and Westpac are Australia’s four largest banks.

De-banking is a serious issue. Binance’s de-banking affected about 1 million customers in Australia. Undoubtedly, the abrupt removal from the financial system has presented difficulties for the crypto exchange. Users were given the reassurance that the loss of their banking partner had not significantly affected their company operations.

Australia also saw the Commonwealth Bank (CBA) put partial restrictions because of “scams and the amount of money lost by customers.” Nonetheless, the recognition by the government of the seriousness of de-banking is a step in the right direction.