Australian Crypto Industry Fights Back Against Bank Restrictions

Key Points:

• Crypto industry stakeholders in Australia take a stand against local banks’ restrictions on crypto payments.
• Blockchain Australia wants to tackle the issue “head-on by using real data” and will host a roundtable discussion on June 27 with policymakers.
• The body plans to start an education program for consumers on crypto and its benefits and seeks acknowledgment of those practices by the banks.

The crypto industry in Australia has been experiencing a series of challenges lately.

Local banks have been imposing restrictions on crypto payments and this has not been well received by industry stakeholders. In an effort to tackle this issue, Blockchain Australia, the industry body that represents the blockchain industry in Australia, has decided to take a stand against these restrictions.

In a recent announcement, Blockchain Australia has called out these restrictions and has said that it wants to tackle the issue “head-on by using real data.” It is worth noting that the restrictions imposed by local banks are not without cause. In fact, the Commonwealth Bank (CBA) recently applied partial restrictions on crypto payments citing “scams and the amount of money lost by customers.” Binance Australia also halted Australian dollar (AUD) deposits and withdrawals by bank transfer “due to a decision made” by a third-party payment service provider.

Despite these reasons, the decision by banking institutions to restrict millions of their customers from making payments to cryptocurrency exchanges has been widely criticized by industry stakeholders. Jackson Zeng, director of Blockchain Australia, has described the restrictions as a “profound curtailment of economic freedom in Australia.” According to him, every individual has the inherent right to make decisions on how and where to use their finances and banks should facilitate these decisions, not impose restrictions upon them.

To address this issue, Blockchain Australia has decided to host a roundtable discussion on June 27 during Blockchain Week in Australia to discuss the issue with policymakers. The industry body plans to seek the acknowledgement of its education program for consumers on crypto and its benefits. This program will include information on how to identify scams and recognize good actors in the space.

Blockchain Australia believes that blanket restrictions have very costly side effects and may not be the most effective solution to reducing crypto-related scams without payment restrictions. Instead, it plans to get banks to provide opt-in protection and education to users, or provide targeted approaches to specific categories of at-risk customers with appropriate education and notification.

The blockchain industry in Australia has taken a stand against recent restrictions by local banks on crypto payments. Blockchain Australia has called out these restrictions and has said that it wants to tackle the issue “head-on by using real data.” The industry body plans to host a roundtable discussion on June 27 during Blockchain Week in Australia to discuss the issue with policymakers and seek acknowledgement of its education program for consumers on crypto and its benefits.

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