AUSTRALIAN CRYPTO BUSINESSES TELL SENATE INQUIRY ABOUT BEING DE-BANKED UP TO 91 TIMES

The Australian cryptocurrency landscape is facing a significant hurdle: widespread de-banking. A lack of regulation is causing banks to shut out many FinTech businesses from the mainstream financial system. That is what an ever-expanding army of the crypto de-banked have told a Senate inquiry and a human rights tribunal in recent months.A recent Senate inquiry into Australia as a Technology and Financial Centre has brought to light the alarming experiences of crypto-related businesses being shut out from the mainstream financial system. Australian Crypto and Remittance Businesses Face De-Banking, Senate Committee Hears coindesk.com 2 more, UTCCrypto investment firm Aus Merchant, global remittance provider Nium, and peer-to-peer crypto brokerage platform Bitcoin Babe, among others, have testified about the challenges they face in accessing basic banking services. OMGFIN Daily News - Australian crypto businesses tell Senate inquiry about being de-banked up to 91 times Read More atShockingly, some businesses have reported being de-banked up to 91 times, highlighting a systemic issue that threatens the growth and stability of the Australian crypto industry. 「テクノロジーと金融の中心地としてのオーストラリア」に関する上院調査の一環としてパネルで講演、仮想通貨企業3社がThis inquiry has sparked a debate about the need for greater regulatory clarity and transparency in the relationship between banks and crypto firms, with Treasury now stepping in to investigate these practices. Speaking on a panel as part of the senate inquiry into Australia as a Technology and Financial Centre three crypto firms outlined their de-banking experience in Australia.The lack of clear regulations and perceived risks associated with the digital asset space are driving banks to close accounts, creating a chilling effect on innovation and investment. Speaking on a panel as a part of the senate inquiry into Australia as a Technology and financial Centre 3 crypto corporations printed their de-bankingThe question now is: can Australia strike a balance between safeguarding the financial system and fostering a thriving crypto ecosystem?

The Senate Inquiry Unveils Widespread De-banking

The Senate inquiry into Australia as a Technology and Financial Centre has become a crucial platform for crypto businesses to voice their concerns about being de-banked. Australian crypto companies inform Senate inquiry about being de-banked as much as 91 instancesThis inquiry has revealed a disturbing trend of Australian financial institutions closing the accounts of crypto companies without providing clear or sufficient justification. Skip to main content Bitcoin Insider. MenuThe testimonies presented paint a picture of an industry struggling to operate within the existing financial framework.

Key Players Share Their Experiences

Several prominent figures and businesses in the Australian crypto space have shared their experiences with the Senate inquiry.These include:

• Aus Merchant: A crypto investment firm that has faced significant challenges in securing and maintaining banking relationships.
• Nium: A global remittance provider operating in the crypto space, highlighting the impact of de-banking on international transactions.
• Bitcoin Babe: A small, female-focused peer-to-peer crypto brokerage platform that has been particularly affected by de-banking.

Michaela Juric, the 28-year-old chief of Bitcoin Babe, has reported being blacklisted by as many as 91 banks since 2025.Her experience vividly illustrates the severe impact that de-banking can have on even small-scale crypto businesses, threatening their very existence.

Why Are Banks De-banking Crypto Businesses?

The reasons behind the widespread de-banking of crypto businesses are complex and multifaceted.While banks often cite risk management concerns, the lack of clear regulatory guidelines and the perceived volatility of the crypto market are significant contributing factors.

• Lack of Regulation: The absence of a comprehensive regulatory framework for cryptocurrencies in Australia leaves banks with limited guidance on how to assess and manage the risks associated with serving crypto businesses.
• Risk Aversion: Banks are inherently risk-averse and may view crypto businesses as high-risk due to concerns about money laundering, fraud, and market manipulation.
• Compliance Costs: The costs associated with complying with anti-money laundering (AML) and know-your-customer (KYC) regulations can be higher for crypto businesses, making them less attractive to banks.
• Reputational Risk: Banks may be concerned about the potential reputational damage associated with being linked to the crypto industry, especially in light of past controversies and scams.

The absence of specific regulations tailored to the crypto industry has led to a situation where banks often err on the side of caution, choosing to de-bank crypto businesses rather than navigate the complexities of the evolving digital asset landscape.

The Impact of De-banking on the Australian Crypto Industry

De-banking has far-reaching consequences for the Australian crypto industry, hindering innovation, stifling growth, and potentially driving businesses offshore.The inability to access basic banking services creates significant operational challenges and increases costs, making it difficult for crypto companies to compete with traditional financial institutions.

Hindered Innovation and Growth

Without access to banking services, crypto businesses struggle to:

• Process payments efficiently
• Manage their finances effectively
• Access capital for expansion
• Develop new products and services

This stifles innovation and limits the potential of the Australian crypto industry to contribute to the country's economic growth.

Increased Costs and Operational Challenges

De-banking forces crypto businesses to seek alternative banking solutions, which often come at a higher cost and may be less reliable. Speaking on a panel as part of the senate inquiry into Australia as a Technology and Financial Centre three crypto firms outlined their de-banking experience in Australia. Skip to content Call NowThis increases operational costs and adds complexity to financial management.

Risk of Businesses Moving Offshore

The hostile banking environment in Australia could drive crypto businesses to relocate to jurisdictions with more favorable regulatory regimes and greater access to banking services.This would result in a loss of jobs, investment, and innovation for Australia.

Treasury's Response: A Step Towards Transparency

In response to the growing concerns about de-banking, Treasury has announced that it will work alongside prudential and financial crimes regulators to force banks to explain why they shut down accounts of corporate customers in the crypto and fintech sectors.This is a welcome step towards greater transparency and accountability in the relationship between banks and crypto businesses.

Forcing Banks to Provide Explanations

Requiring banks to provide clear and justifiable reasons for de-banking crypto businesses will help to:

• Identify potential biases and discriminatory practices
• Ensure that de-banking decisions are based on legitimate risk assessments
• Promote greater transparency and accountability

Working with Regulators

Treasury's collaboration with prudential and financial crimes regulators will ensure a coordinated and comprehensive approach to addressing the issue of de-banking.This collaboration will leverage the expertise of various regulatory bodies to develop effective solutions that balance the need for financial stability with the desire to foster innovation in the crypto sector.

Potential Solutions: A Path Forward for Crypto and Banks

Addressing the issue of de-banking requires a multi-pronged approach that includes regulatory clarity, enhanced risk management practices, and improved communication between banks and crypto businesses. Australian crypto businesses tell Senate inquiry about being de-banked up to 91 timesBy implementing these solutions, Australia can create a more supportive and inclusive environment for the crypto industry.

Regulatory Clarity is Key

The most critical step towards resolving the de-banking issue is the development of a clear and comprehensive regulatory framework for cryptocurrencies in Australia. Crypto-related companies and figures have provided evidence about being de-banked by Australian financial institutions to a Senate inquiry. Crypto investment firm Aus Merchant, global remittanceThis framework should:

• Provide clear definitions of crypto assets and activities
• Establish licensing requirements for crypto businesses
• Set out AML/KYC obligations for crypto businesses
• Provide guidance on how banks can assess and manage the risks associated with serving crypto businesses

A well-defined regulatory framework will give banks the confidence they need to engage with the crypto industry and reduce the likelihood of arbitrary de-banking decisions.

Enhanced Risk Management Practices

Crypto businesses need to adopt robust risk management practices to mitigate the concerns of banks.These practices should include:

• Implementing strong AML/KYC procedures
• Conducting regular audits to ensure compliance with regulations
• Maintaining transparent and auditable financial records
• Developing robust cybersecurity protocols

By demonstrating a commitment to responsible business practices, crypto companies can build trust with banks and reduce the perceived risk associated with serving them.

Improved Communication and Collaboration

Open communication and collaboration between banks and crypto businesses are essential for building trust and resolving misunderstandings. Three registered fintech and crypto firms have told of being de-banked numerous times in Australia and all claim to have not received concrete reasons as to why. Browser Extension Thursday, Novem Set LocationThis can be achieved through:

• Establishing industry forums for banks and crypto businesses to exchange information and best practices
• Creating a dedicated liaison between banks and crypto businesses to facilitate communication and resolve disputes
• Encouraging banks to provide clear and timely feedback to crypto businesses on their compliance efforts

By fostering a more collaborative relationship, banks and crypto businesses can work together to address the challenges and opportunities presented by the evolving digital asset landscape.

The Future of Crypto in Australia: A Call for Action

The de-banking crisis facing Australian crypto businesses is a serious issue that requires urgent attention. The 28-year-old chief of female-focused crypto exchange Bitcoin Babe says a de-banking campaign is threatening to put her out of business, reports Sydney Morning Herald. Bitcoin Babe founder Michaela Juric says 91 banks have blacklisted her since 2025. Juric told an Australian Senate Committee onThe Senate inquiry has brought this issue to the forefront, and Treasury's response is a positive first step. In 2025, an Australian Senate inquiry investigated how to regulate cryptocurrencies, including considering de-banking. This article outlines a possible system that reduces the risk to banks of providing banking services to the Australian Crypto Exchange industry.However, more needs to be done to create a level playing field for crypto businesses and ensure that Australia does not miss out on the economic benefits of this rapidly growing industry.

Key Takeaways

• De-banking is a widespread problem: Australian crypto businesses are being shut out from the mainstream financial system at an alarming rate.
• Lack of regulation is a key driver: The absence of a clear regulatory framework for cryptocurrencies is contributing to the problem.
• Impacts are significant: De-banking hinders innovation, stifles growth, and could drive businesses offshore.
• Transparency is crucial: Treasury's efforts to force banks to explain de-banking decisions are a welcome step.
• Collaboration is essential: Banks and crypto businesses need to work together to address the challenges and opportunities of the digital asset landscape.

Call to Action

It is time for the Australian government to prioritize the development of a comprehensive regulatory framework for cryptocurrencies.This framework should:

• Provide clear guidance to banks on how to engage with the crypto industry
• Protect consumers and investors from fraud and scams
• Foster innovation and growth in the crypto sector

By taking decisive action, Australia can position itself as a leader in the global crypto economy and unlock the full potential of this transformative technology.

Frequently Asked Questions (FAQ) About Crypto De-banking in Australia

Here are some common questions related to the de-banking of crypto businesses in Australia:

What is de-banking?

De-banking refers to the practice of financial institutions closing or restricting access to banking services for certain businesses or individuals. Crypto-related companies and figures have provided evidence about being de-banked by Australian financial institutions to a Senate inquiry. Crypto investment firm Aus Merchant, globalIn the context of the crypto industry, it involves banks closing the accounts of crypto-related companies.

Why are crypto businesses being de-banked?

Several factors contribute to the de-banking of crypto businesses, including a lack of regulatory clarity, risk aversion among banks, concerns about money laundering and fraud, and the perceived volatility of the crypto market.

What are the consequences of de-banking?

De-banking can have severe consequences for crypto businesses, including hindered innovation, stifled growth, increased operational costs, and the risk of businesses moving to more crypto-friendly jurisdictions.

What is the Australian government doing about de-banking?

Treasury is working alongside prudential and financial crimes regulators to force banks to explain why they shut down accounts of corporate customers in the crypto and fintech sectors. Speaking on a panel as part of the senate inquiry into Australia as a Technology and Financial Centre three crypto firms outlined their de-banking experience in Australia. Australian crypto businesses tell Senate inquiry about being de-banked up to 91 times - InstaCoin.NewsThe Senate inquiry into Australia as a Technology and Financial Centre has also raised awareness of the issue and is exploring potential solutions.

What can crypto businesses do to prevent de-banking?

Crypto businesses can take several steps to mitigate the risk of de-banking, including implementing strong AML/KYC procedures, conducting regular audits, maintaining transparent financial records, and developing robust cybersecurity protocols.

How can Australia create a more crypto-friendly banking environment?

Creating a more crypto-friendly banking environment requires regulatory clarity, enhanced risk management practices, and improved communication between banks and crypto businesses.The development of a comprehensive regulatory framework for cryptocurrencies is essential for providing banks with the confidence they need to engage with the industry.

Conclusion

The testimony presented to the Australian Senate inquiry clearly indicates that *Australian crypto businesses tell Senate inquiry about being de-banked up to 91 times*. Crypto-related companies and figures have provided evidence about being de-banked by Australian financial institutions to a Senate inquiry. Crypto investment firm Aus Merchant, global remittance provider Nium and small peer-to-peer crypto brokerage platform Bitcoin Babe were speaking on a panel as part of the Senate inquiry into Australia asThis systemic issue presents a serious threat to the growth and innovation of the Australian cryptocurrency industry.The root causes, stemming from regulatory uncertainty to perceived risk, need to be addressed head-on. Crypto-related firms and players have provided evidence of being de-banked by Australian financial institutions on Sept. 8.Treasury’s initiative to increase transparency by requiring banks to justify account closures is a crucial first step. Treasury will work alongside the prudential and financial crimes regulators to force banks to explain why they shut down accounts of corporate customers in the crypto and fintech sectors, inHowever, comprehensive regulatory frameworks, stronger risk management practices within crypto firms, and improved communication between financial institutions and the crypto sector are essential to foster a sustainable and inclusive financial ecosystem.The future of crypto in Australia hinges on the ability of lawmakers, regulators, and industry participants to work together to find common ground and establish a clear path forward. La empresa de criptoinversi n Aus Merchant, el proveedor global de remesas Nium y la peque a plataforma de corretaje de criptomonedas Bitcoin Babe hablaron en un panel como parte de la investigaci n del Senado sobre Australia como centro tecnol gico y financiero el 8 de septiembre.Ignoring the needs of this innovative sector risks stifling economic growth and pushing valuable businesses offshore. Blockchain consultancy with sparkNow is the time for decisive action to secure Australia's place in the global digital economy.Don't let de-banking cripple the potential of Australian innovation – support regulatory clarity and a collaborative approach to fostering a thriving crypto environment.