Coinbase Accuses Australia’s Big Four Banks of Systemic Crypto Debanking

Coinbase warns that debanking by Australia’s big banks is systemic, hurting crypto firms, competition, innovation, trust amid tightening regulation, and nationwide pressures.

Coinbase has warned that debanking is becoming a serious and widespread issue in Australia. The problem is no longer isolated and occasional, the crypto exchange said. Instead, it has become an ordinary part of the financial system in the country. As a result, the trust and competition are increasingly threatened.

In a submission to the House of Representatives Standing Committee on Economics, Coinbase had some strong concerns. The Nasdaq-listed company had accused major banks of refusing services to legal crypto businesses. Therefore, it contended that it is being unfairly restricted access to basic banking.

Coinbase Accuses Big Four Banks of Systemic Barriers

Coinbase openly attacked Australia’s Big Four banks. These include Commonwealth Bank, Westpac, ANZ, and National Australia Bank. According to Coinbase, these banks have policies that prevent crypto and fintech companies from using core banking services.

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These actions have the effect of not allowing people and businesses to use their own money freely, the exchange said. Moreover, Coinbase called the situation an “unlawful regulatory ban” in practice. Because these banks control most of the payment rails, the decisions they make have a wide impact.

Coinbase said that banks tend to deny services as a matter of policy. In many cases, the firms are not individually evaluated on the basis of risk. In turn, compliant crypto companies are treated the same way as high-risk entities.

The exchange also warned that this approach is bad for the consumer. When accounts are closed abruptly, users are deprived of funds and payment services. Therefore, confidence in the financial system starts to decline.

Coinbase said the lack of transparency makes the problem worse. Banks often give few explanations as to why the account is being closed. As a result, affected businesses have a hard time responding to or appealing decisions.

Regulatory Pressure Adds Urgency to the Debate

The warning comes at a time of change in regulation in Australia. In March 2026, the new AML and CTF legislation will come into place. These rules will mean that crypto service providers will have to meet standards similar to banks.

At the same time, Coinbase is faced with new licensing requirements. The exchange is required to obtain an Australian Financial Services Licence. Therefore, access to banking services is becoming even more important.

Coinbase noted that continued debanking may have a negative impact on innovation. It said Australian entrepreneurs could be driven out of the global digital asset market. Meanwhile, other countries keep backing regulated crypto growth.

To rectify the problem, Coinbase pushed the Parliament to take action. It recommended the adoption of measures for transparency under the proposals made in 2022. These have some good reasons for debanking and proper notice periods.

One proposal is that banks should provide at least 30 days’ notice before closing accounts. Another is suggesting internal dispute resolution options for small businesses. Together, these steps are intended to enhance fairness.

Industry reactions have been mixed. ABA chief executive Simon Birmingham said that where banks had the risks, they needed to do something about them. However, he suggested that crypto platforms should improve their controls instead of getting special treatment.

Crypto investor Fred Schebesta backed Coinbase’s concerns. He said debanking is real and rampant throughout Australia. He also pointed to transfer limits and forced crypto sales as examples.

Overall, Coinbase said debanking is “threatening trust to Australia’s economy”. Without reform, innovation and competition might suffer. As regulation tightens, the issue is expected to be kept under close watch.

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