- Coinbase slammed Australian banks for “systemic” debanking in a February 2026 inquiry, claiming corporations are being reduce off from important providers as customary protocol.
- Banks cite $330M in annual crypto scams and strict anti-money laundering (AML) penalties as the rationale for blocking transfers and shutting accounts.
- New laws begin March 31, 2026, forcing exchanges to fulfill bank-level AML requirements, which can finally present a path to “rebanking” the sector.
Crypto trade Coinbase has accused Australia’s main banks of systematically slicing off providers to crypto and fintech corporations, stating debanking has shifted from a uncommon occasion to “a systemic characteristic of the Australian monetary panorama” and now threatens competitors.
In a submission to a federal inquiry into digital wallets and funds innovation, the Nasdaq-listed trade stated reliable digital asset and fintech companies face account closures, refusals of enterprise banking and restrictions on transfers used to purchase crypto, AFR reported.
It argued that enormous banks, targeted on anti-money laundering (AML) guidelines and rip-off prevention, have made debanking “customary protocol” for firms utilizing blockchain and digital belongings. Nevertheless, Coinbase, which can want an Australian monetary providers licence and can come below expanded AML guidelines from March 31, didn’t disclose its native person base, affirm whether or not it had been debanked, or present particular examples.
Learn extra: Crypto Sell-Off Deepens as Bitcoin Briefly Dips Below $84K
This comes a couple of weeks after Coinbase’s CEO Brian Armstrong claimed that many excessive executives at vital banks and monetary establishments are actively on the lookout for methods to get entangled in crypto.
Widespread Debanking in Australia
A 2021 Senate inquiry beforehand discovered widespread debanking throughout the fintech sector and really useful measures to stop banks from denying providers to compliant corporations.
Coinbase stated these suggestions had been agreed in precept however by no means carried out. It criticised what it sees as a risk-averse stance from main banks that “erodes belief within the Australian financial system” and should push exercise into much less clear channels.
Banks reject the concept the apply is bigoted, and it’s largely because of the huge quantity of crypto-money misplaced to scams and hacks. Figures cited by AFR point out that Aussies misplaced at the very least AU$330 million to crypto scams within the yr to December 31, and the Australian Banking Affiliation (ABA) notes that establishments face heavy penalties for AML and counter-terrorism financing breaches.
ABA’s chief government, Simon Birmingham, stated banks should act the place vital danger is recognized and argued that if crypto platforms are struggling to fulfill the identical requirements as different monetary establishments, they need to enhance their very own controls somewhat than ask for decrease thresholds.
Entrepreneur and long-time crypto investor Fred Schebesta described debanking as “actual and widespread,” saying many compliant companies have been affected. He pointed to retail caps on transfers to exchanges and situations the place clients had been requested to promote crypto at a loss to show they weren’t being scammed.
At a minimal, banks ought to set up devoted groups and clear escalation pathways for crypto-related accounts, successfully a means of ‘rebanking’ so selections are clear, evidence-based, and topic to evaluate somewhat than silent refusal.
Learn extra: DePIN Isn’t Dead — It’s a $10B Revenue-Driven Market, Messari Says
The put up Coinbase Calls Out Australian Banks Over “Systemic” Crypto Debanking appeared first on Crypto News Australia.