Recent research shows Australian crypto users face bank barriers when working with exchanges and other crypto companies, but industry executives say clearer rules from the government could be silver bullets that solve the problem.
A Binance Survey of 1,900 Australians, released Thursday, found that 58% of respondents wanted to easily deposit funds into deposits without restrictions, while 22% changed banks to facilitate encryption.
Matt Poblocki, general manager of Crypto Exchange Binance’s Australia and New Zealand operations, told Cointelegraph that seamless access to financial services directly affects market participation, trust and trust, slowing adoption and introducing barriers that can limit growth.
“Not only is there a lack of consistent access, there is also the risk of driving activities towards unregulated venues offshores. The consumer and the broader financial system are not profitable.”
Continuing barriers from banks have come despite years of regulatory advances in Australia’s crypto. The crypto exchange was filed in 2018 under the Anti-Money Laundering Act and required registration with Australian financial intelligence agency Austrak.
The country’s first exchange sales fund directly holding Bitcoin (BTC) was launched in June 2024, followed by an ether (ETH) holding ETF in October 2024.
On Tuesday, Crypto introduced Coinbase and OKX to self-managed retirement pension funds in Australia, providing a new way for Crypto to break into the country’s retirement savings system.
Crypto business, users regularly encounter bank barriers
OKX Australia CEO Kate Cooper told Cointelegraph that in her traditional finance in Australia’s leading NABs and now as a crypto exchange boss, she still refuses banking services to crypto companies and prevents transfers to crypto exchanges.
Commonwealth Bank, Australia’s largest bank, has announced a $10,000 ($6,527) limit per month for customers sending funds to crypto exchanges.
“We regularly field calls from our customers. “My banks are not allowed to me. What banks can do this? What should I do? What are my options?” Cooper said.
“I don’t know that’s affecting adoption, and the reason is that there’s a significant adoption rate in Australia, which means Australians are participating, but I think friction will cause a lot of complaints to our customers.”
Australian anti-money laundering regulator, Australia’s Centre for Transactions and Analysis (Austrac), released updated guidance in March.
Some exchange clients and employees face removal
Jonathon Miller, Australia’s general manager at Kraken, told CointeLegraph that the exchange sees countless clients and employees losing access to their accounts due to their involvement with the crypto ecosystem.
Detaching includes one of the most prominent examples of practices occurring in the US during passage surveillance, denying access to the services of individuals and organizations flagged as a possible risk.
Miller said Crypto companies are experiencing similar obstacles. This “creates concentration risk. Local interactions and startups are often willing to work with very limited banks.”
“It reminds me of why cryptography exists in the first place. If an intermediary can unilaterally cut you off from basic financial services in order to build financial independence, the financial system itself is fundamentally broken.”
Poblocki said Vinanence also encountered an Australian obstacle. Anyone using an exchange can buy and sell crypto using a credit or debit card, but cannot deposit or withdraw Australian dollars via bank transfer. This says it “reflects the challenges of a wider industry rather than isolated issues.”
He added that the exchange continues to maintain alternative on-ramp and off-ramps and continues to work towards more sustainable solutions.
Cooper also said that “it continues to be a major issue in Australia for the crypto sector,” she said that banks are refusing to provide banking services to businesses operating in the sector.
Legal Crypto Bank Block Solutions
Cooper said the most important factor that could end a cryptographic failure is legislation that is appropriate for its purpose. She points to drafting a law that could be released at the end of the month.
“And what it does is that it helps to sort out wheat from its shell. It’s a good actor with bad actors and gives banks more to who runs in the regulated financial services industry.”
The Australian government has proposed a new cryptographic framework under the Labour Party on the left and right of the control centres to regulate and remove exchanges ahead of the federal elections earlier this year.
Australia’s Treasury said in March that the new crypto regulations will have four priorities. sauce: Australian Ministry of Finance
Miller said that clear laws and regulatory guidance are essential to addressing the elimination, but it is also the end of restrictions on the crypto industry and its participants, but some participants are not yet universally accepted.
Related: The Australian government has no plans to establish strategic crypto preparations
“What we need instead is a more nuanced approach to due diligence, which distinguishes between bad actors and legitimate companies that build responsibly,” he said.
Meanwhile, Poblocki also said there is a need for a law that “cooperation between governments, banks and industry provides clarity of regulations.”
“Clear regulatory guidance, coupled with joint efforts between stakeholders, is the best way to resolve the out-of-loop.”
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