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.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 , sanctions compliance, reputational risk considerations and others, the authority noted.
“The Government recognises the seriousness of de-banking and understands that inaction on the issue will stifle competition and innovation in the financial services sector and may drive businesses underground and to operate exclusively in cash.”
There is a clear lack of data on debanking practices in Australia, which makes it challenging to devise effective policy responses. “The Government acknowledges the importance of insightful data to monitor any potential policy responses to de-banking,” the statement reads.