Crypto debanking could drive industry underground: Australia Treasury
The Australian government is addressing the risks of cutting banking services to crypto exchanges amid flurry of banks restricting certain services over scams. The growing trend of cutting services to cryptocurrency companies in Australia could lead to undesired consequences like making the industry less transparent, according to the state. Australia's Treasury on 28 June published an official statement addressing potential policy responses on de banking in Australia. De banking occurs when a bank declines to provide services to a customer citing issues like Anti-Money Laundering (AML), sanctions compliance, reputational risk considerations and others, the authority noted. According to the Treasury, there is a clear lack of data on debanking practices in Australia, which makes it challenging to design effective policy responses. “The Government acknowledges the importance of insightful data to monitor any potential policy responses to de-banking,” the statement reads. The autho...