Coinbase, the U.S.-based cryptocurrency exchange, has publicly accused major Australian banks of making debanking a “systemic feature” of the national financial system, spotlighting ongoing tensions between digital asset firms and traditional banking institutions.
Coinbase’s comments come amid broader debate in Australia about how the nation’s banks interact with crypto businesses and fintechs.
Debanking refers to banks refusing or withdrawing services from clients they consider high risk, often without clear explanations, a practice that industry observers say can damage innovation and competition.
Banks and the Crypto Sector, A Strained Relationship
Australia’s four largest banks Commonwealth Bank, Westpac, ANZ and National Australia Bank have faced criticism from crypto advocates for restricting services to digital asset firms and users.
While specific internal banking policies are not publicly disclosed, industry voices describe instances where accounts or transaction capabilities tied to crypto activity have been limited or closed.
Coinbase and others argue that these practices go beyond isolated incidents.
The AFR report quotes the exchange’s view that major banks’ decisions to decline accounts or services to compliant crypto businesses occur “as standard protocol” rather than on a case-by-case assessment.
Government Actions on Regulation and Banking Access
Australia’s federal government has acknowledged the issue and is pushing regulatory reforms aimed at reducing uncertainty and improving financial access for crypto businesses.
In March 2025, the Albanese-led Treasury proposed a comprehensive regulatory framework to bring cryptocurrency exchanges, custody services and some brokerages under the country’s existing financial services laws.
This framework would require digital asset platforms to obtain an Australian Financial Services Licence (AFSL) and meet capital, compliance and consumer protection standards.
The Treasury also promised to work with Australia’s four largest banks to better understand the nature of debanking and improve engagement with the crypto sector.
Government proposals are tied to broader digital assets policy goals and come ahead of anticipated elections.
The planned legislation is slated for public consultation in 2025, and could shift depending on the outcome. The same government documents commit to regulatory sandboxes and reviews of stablecoins and digitised payments.
Industry Viewpoints and Continued Barriers
Despite regulatory efforts, industry leaders say banking barriers persist.
Executives from crypto platforms have noted that crypto firms still encounter refusals of banking services and that legislative clarity is needed to give banks confidence to engage with compliant digital asset companies.
Experts say that clearer rules could ease the risk aversion that leads banks to limit services for crypto businesses.
Crypto advocacy groups like Stand With Crypto have also argued that debanking results in reputational damage, loss of revenue and increased operational costs for industry players, forcing some firms to consider relocating offshore.
Stand With Crypto’s commentary reflects concerns echoed by industry participants in Australia and abroad.
