Australia’s Treasury has acknowledged the severity of de-banking and the potential for businesses to go underground if no action is taken. The Treasury has also backed the majority of the Council of Financial Regulators’ (CFR) advice on de-banking. This follows recent instances of banks in Australia restricting crypto platforms, such as the Commonwealth Bank (CBA) citing scams and the amount of money lost by customers and Binance Australia halting Australian dollar (AUD) deposits and withdrawals.
The CFR had given the government four recommendations on potential policy responses to de-banking, to which the government agreed to the data collection recommendation and supported the recommendation that all banks implement measures to improve transparency and fairness in relation to de-banking. The government also supported the recommendation that Australia’s four major banks publish guidance applicable to the digital currency exchanges.
Blockchain Australia, the nation’s industry body, has made a commitment to reduce the intersection of crypto-assets and scams, and collaborate with payment providers and banks to stop scams. This follows a Stopping Scams Roundtable involving 28 representatives, as well as observers from the Australian Securities and Investments Commission (ASIC) and Treasury.
We understand inaction could drive business underground, said the Treasury.