- Coinbase has formally accused Australia‘s Big Four banks of systemically debanking crypto and fintech firms, calling it a threat to competition.
- The exchange claims up to 60% of fintech businesses were denied banking services in 2021, a persistent issue it wants addressed through legislation.
- Coinbase is urging lawmakers to implement five transparency measures for banks, which were recommended by regulators in 2022 but never adopted.
Coinbase has submitted a formal complaint to Australia’s parliament, accusing the nation’s dominant banks of turning service denials into standard procedure for crypto companies. The Nasdaq-listed exchange warned this practice, detailed in a parliamentary inquiry submission, has evolved from an anomaly into a systemic feature.
It specifically named Commonwealth Bank, Westpac, ANZ, and National Australia Bank for policies that impede people’s ability to use their money. Consequently, these actions can function as an unlawful regulatory ban, excluding lawful sectors from the formal economy.
However, banks often justify closures on anti-money laundering and counter-terrorism financing grounds. Coinbase argues that “the opacity of these decisions has engendered a crisis of confidence in the Australian financial system amongst its everyday users.”
The exchange cited international precedents, like the EU’s guarantee of basic accounts and Canada‘s inclusive policies. Meanwhile, in the U.S., former President Donald Trump recently filed a lawsuit alleging politically motivated debanking.
For a solution, Coinbase is pushing lawmakers to compel banks to adopt five transparency measures. These measures, which include providing reasons for closures and 30 days’ notice, were recommended by financial regulators but never implemented.
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