Coinbase Accuses Australia’s Big Four Banks of ‘Unlawful’ Crypto Debanking

Coinbase has taken its fight against crypto debanking to Australia’s parliament, filing a formal complaint that accuses the country’s biggest banks of shutting legitimate crypto businesses out of the financial system.

Here’s the scoop.

Big Four Banks Named in Filing

The submission, sent to the House of Representatives Standing Committee on Economics, names Commonwealth Bank, Westpac, ANZ, and National Australia Bank. Coinbase said these banks are closing accounts without warning and blocking transactions tied to digital assets.

“There is nothing that degrades trust in an economy faster than being told you cannot use your own money,” Coinbase wrote.

The exchange warned that debanking has gone from a rare problem to a “systemic feature of the Australian financial landscape.” With four banks controlling most of the country’s payment rails, losing access amounts to an “unlawful regulatory ban” on lawful businesses.

Data cited in the filing shows 60% of fintech businesses faced denial of service from banks in 2021. That problem remains unresolved.

Reforms That Never Happened

Coinbase urged lawmakers to pass five transparency measures that regulators recommended years ago. The government backed these reforms in August 2022, but they were never put into law.

The measures would require banks to explain account closures, give 30 days’ notice, and provide access to dispute resolution.

Also Read: Why Was Coinbase’s Brian Armstrong Snubbed by Top US Bank CEOs at Davos?

Australia Falling Behind?

The exchange pointed to how other countries handle the issue. The EU guarantees a basic bank account for all legal residents. Canada allows account access even with a bankruptcy history. In the U.S., President Donald Trump signed an executive order last August to stop crypto-related debanking.

Australia’s $4 billion fintech sector now waits on parliamentary recommendations expected later this year. The outcome could determine whether crypto innovation stays or moves elsewhere.