Crypto debanking could drive industry underground: Australia Treasury
The growing trend of cutting services to cryptocurrency companies in Australia could lead to undesired consequences like making the industry less transparent, according to the state.
Australia's Treasury on 28 June published an official statement addressing potential policy responses on debanking in Australia. Debanking occurs when a bank declines to provide services to a customer citing issues like Anti-Money Laundering (AML), sanctions compliance, reputational risk considerations and others, the authority noted.
According to the Treasury, there is a clear lack of data on debanking practices in Australia, which makes it challenging to design effective policy responses. “The Government acknowledges the importance of insightful data to monitor any potential policy responses to de-banking,” the statement reads. The authority added:
Among four issued policy responses on debanking, Australia's Treasury mentioned digital currency exchanges. The authority specifically advised Australia’s four major banks — Commonwealth Bank of Australia (CBA), Westpac, ANZ Group and National Australia Bank — to publish guidance applicable to crypto exchanges.
The Treasury stressed that it has encouraged the banks to publish data on their requirements and risk tolerance of crypto services providers, the document reads.
“The Government expects banks to communicate their requirements to both existing and potential customers clearly and proactively prior to refusing or withdrawing banking services,” Australia's Treasury wrote. The state will also work closely with regulators, banks and the affected sectors to ensure that the implementation of the “agreed upon recommendations is effective and achievable.”
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