Australia Takes Action Against De-Banking of Crypto Entities, Backs Policy Recommendations

Australia Takes Action Against De-Banking of Crypto Entities, Backs Policy Recommendations

Australia's Treasury has acknowledged the seriousness of de-banking crypto entities and the potential consequences of inaction, stating that failure to address the issue could drive these businesses underground. Responding to instances where banking partners have cut off crypto platforms in the country, the Treasury has shown its support for the majority of policy recommendations put forth by the Council of Financial Regulators (CFR) regarding de-banking.

Notably, the Commonwealth Bank (CBA) recently imposed partial restrictions citing customer scams and financial losses, while Binance Australia suspended Australian dollar (AUD) deposits and withdrawals via bank transfers due to a decision made by a third-party payment service provider.

Last year, the CFR provided the government with four recommendations for potential policy responses to de-banking. The Australian government has "agreed" to the recommendation for data collection and "supported" the recommendation for banks to implement measures enhancing transparency and fairness in de-banking practices. Additionally, the government backs the suggestion that the four major banks in Australia (Commonwealth Bank, National Australia Bank, ANZ Bank, and Westpac) publish guidance applicable to digital currency exchanges.

The government's decision to clarify its stance on de-banking follows Blockchain Australia's renewed commitment to reducing the intersection of crypto-assets and scams. The industry body hosted a "Stopping Scams Roundtable," involving 28 representatives, including observers from the Australian Securities and Investments Commission (ASIC) and Treasury. Earlier this month, Blockchain Australia condemned the de-banking of cryptocurrency platforms and announced plans to hold a roundtable meeting addressing the issue.

The Australian government's support for policy recommendations and the proactive engagement of Blockchain Australia reflect a collective effort to mitigate scams and protect the interests of crypto participants. By fostering collaboration with payment providers and banks and leveraging innovative technologies, they aim to curtail fraudulent activities. These developments signal a commitment to addressing the challenges faced by the crypto industry in Australia.

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