{"id":6288,"date":"2026-02-03T11:01:34","date_gmt":"2026-02-03T11:01:34","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=6288"},"modified":"2026-02-03T11:01:34","modified_gmt":"2026-02-03T11:01:34","slug":"coinbase-calls-out-australian-banks-over-systemic-crypto-debanking","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=6288","title":{"rendered":"Coinbase Calls Out Australian Banks Over \u201cSystemic\u201d Crypto Debanking"},"content":{"rendered":"

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  • Coinbase slammed Australian banks for \u201csystemic\u201d debanking in a February 2026 inquiry, claiming firms are being cut off from essential services as standard protocol.<\/span><\/li>\n
  • Banks cite $330M in annual crypto scams and strict anti-money laundering (AML) penalties as the reason for blocking transfers and closing accounts.<\/span><\/li>\n
  • New regulations start March 31, 2026, forcing exchanges to meet bank-level AML standards, which may eventually provide a path to \u201crebanking\u201d the sector.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n

    Crypto exchange Coinbase has accused Australia\u2019s major banks of systematically cutting off services to crypto and fintech firms, stating debanking has shifted from a rare event to \u201ca systemic feature of the Australian financial landscape\u201d and now threatens competition.<\/p>\n

    In a submission to a federal inquiry into digital wallets and payments innovation, the Nasdaq-listed exchange said legitimate digital asset and fintech businesses face account closures, refusals of business banking and restrictions on transfers used to buy crypto, AFR reported.<\/p>\n

    It argued that large banks, focused on anti-money laundering (AML) rules and scam prevention, have made debanking \u201cstandard protocol\u201d for companies using blockchain and digital assets. However, Coinbase, which will need an Australian financial services licence and will come under expanded AML rules from March 31, did not disclose its local user base, confirm whether it had been debanked, or provide specific examples.<\/p>\n

    Read more: Crypto Sell-Off Deepens as Bitcoin Briefly Dips Below $84K<\/strong><\/p>\n

    This comes a few weeks after Coinbase\u2019s CEO Brian Armstrong claimed that many high executives at important banks and financial institutions are actively looking for ways to get involved in crypto.<\/p>\n

    Widespread Debanking in Australia<\/h2>\n

    A 2021 Senate inquiry previously found widespread debanking across the fintech sector and recommended measures to prevent banks from denying services to compliant firms.\u00a0<\/p>\n

    Coinbase said those recommendations were agreed in principle but never implemented. It criticised what it sees as a risk-averse stance from major banks that \u201cerodes trust in the Australian economy\u201d and may push activity into less transparent channels.<\/p>\n

    Banks reject the idea that the practice is arbitrary, and it\u2019s mostly due to the vast amount of crypto-money lost to scams and hacks. Figures cited by AFR mention that Aussies lost at least AU$330 million to crypto scams in the year to December 31, and the Australian Banking Association (ABA) notes that institutions face heavy penalties for AML and counter-terrorism financing breaches.\u00a0<\/p>\n

    ABA\u2019s chief executive, Simon Birmingham, said banks must act where significant risk is identified and argued that if crypto platforms are struggling to meet the same standards as other financial institutions, they should improve their own controls rather than ask for lower thresholds.<\/p>\n

    Entrepreneur and long-time crypto investor Fred Schebesta described debanking as \u201creal and widespread,\u201d saying many compliant businesses have been affected. He pointed to retail caps on transfers to exchanges and instances where customers were asked to sell crypto at a loss to prove they were not being scammed.\u00a0<\/p>\n

    \n
    \n

    At a minimum, banks should establish dedicated teams and clear escalation pathways for crypto-related accounts, effectively a process of \u2018rebanking\u2019 so decisions are transparent, evidence-based, and subject to review rather than silent refusal.<\/em><\/p>\n<\/div>\n

    \n Fred Schebesta, crypto entrepreneur and investor. <\/div>\n<\/div>\n

    Read more: DePIN Isn\u2019t Dead \u2014 It\u2019s a $10B Revenue-Driven Market, Messari Says<\/strong><\/p>\n<\/p><\/div>\n

    Australia,Banking,Coinbase#Coinbase #Calls #Australian #Banks #Systemic #Crypto #Debanking1770116494<\/p>\n","protected":false},"excerpt":{"rendered":"

    Coinbase slammed Australian banks for \u201csystemic\u201d debanking in a February 2026 inquiry, claiming firms are being cut off from essential services as standard protocol. Banks cite $330M in annual crypto scams and strict anti-money laundering (AML) penalties as the reason for blocking transfers and closing accounts. New regulations start March 31, 2026, forcing exchanges to<\/p>\n","protected":false},"author":1,"featured_media":6289,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[141,47,1539,84,62,2135,2134],"class_list":{"0":"post-6288","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bitcoin","8":"tag-australian","9":"tag-banks","10":"tag-calls","11":"tag-coinbase","12":"tag-crypto","13":"tag-debanking","14":"tag-systemic"},"yoast_head":"\nCoinbase Calls Out Australian Banks Over \u201cSystemic\u201d Crypto Debanking - Crypto News: Latest Cryptocurrency News and Analysis<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptonews.uk.com\/?p=6288\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Coinbase Calls Out Australian Banks Over \u201cSystemic\u201d Crypto Debanking\" \/>\n<meta property=\"og:description\" content=\"Coinbase slammed Australian banks for \u201csystemic\u201d debanking in a February 2026 inquiry, claiming firms are being cut off from essential services as standard protocol. 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