Crypto industry body slams banking restrictions in Australia

Amidst recent limitations imposed by Australian banks on cryptocurrency payments, key players within the blockchain industry are mobilizing to resist these constraints.

Blockchain Australia, an industry organization, has voiced its opposition to the restrictions and expressed its determination to address the issue proactively with concrete data-driven strategies.

Fostering collaboration

Acknowledging the growing concerns regarding crypto-related scams and fraud, Blockchain Australia is actively addressing these challenges through a series of initiatives.

Their efforts include the launch of an educational program aimed at empowering consumers with knowledge about cryptocurrencies, emphasizing that crypto itself is not inherently problematic but rather scammers who exploit it. 

Furthermore, they are recognizing and promoting the ethical conduct of industry players who uphold best practices, seeking validation from banks.

To foster collaboration and combat scams within Australia, Blockchain Australia has scheduled an Industry Roundtable on June 27, 2023, bringing together the blockchain industry, banking and finance sector, and government representatives. 

Moving past financial exclusion

These developments come in response to the Commonwealth Bank (CBA), the largest financial institution in Australia, making the decision to take precautionary measures by either pausing or implementing temporary suspensions on payments to crypto exchanges.

The move comes as a response to the significant risk of fraudulent activities associated with cryptocurrencies.

“The recent decision by banking institutions to restrict millions of their customers from making payments to cryptocurrency exchanges represents a profound curtailment of economic freedom in Australia. Every individual has an inherent right … to make decisions on how and where to use their finances … The principal role of banks is to facilitate these decisions, not to impose restrictions on them.”

Jackson Zeng, director of Blockchain Australia.

Although it is too early to say what the results of the roundtable will be, the discussion marks a step in the right direction, addressing the hurdles for individuals who rely on crypto exchanges for various purposes such as investments, trading, or accessing decentralized finance (DeFi) platforms and supporting the nation on their own objective to spur on adoption of cryptocurrencies in the country.