Coinbase has formally accused Australia’s “Big Four” banks of systematic debanking against crypto and fintech firms. In a parliamentary submission, the exchange claims up to 60% of fintechs faced service denial in 2021 and urges lawmakers to implement five stalled transparency measures to address the issue.
Coinbase has submitted a detailed complaint to the Australian parliament, accusing the country’s major banks of making debanking “standard protocol.” The exchange warned the practice threatens competition and trust in the economy.
In its filing to the House of Representatives Standing Committee on Economics, Coinbase stated that debanking has become “a systemic feature of the Australian financial landscape.” It specifically named Commonwealth Bank, Westpac, ANZ, and National Australia Bank.
The complaint alleges banks use unilateral account closures and transaction restrictions targeting digital assets. Coinbase wrote that policies “impede on people’s abilities to use their own money.”
The exchange argues that with four banks controlling most payment rails, account exits can act as an “unlawful regulatory ban.” It noted that in 2021, up to 60% of fintech businesses faced denial of service from banks.
While banks cite AML/CTF grounds, Coinbase claimed “the opacity of these decisions has engendered a crisis of confidence.” “There is nothing that degrades trust in an economy faster than being told you cannot use your own money,” the submission stated.
Coinbase called on lawmakers to legislate five transparency measures recommended by the Council of Financial Regulators in 2022. The measures, detailed in a Treasury report, include requiring banks to document and provide reasons for debanking.
The proposed rules also mandate a minimum 30 days’ notice before closing core services. These measures were never implemented despite government support announced in August 2022.
The exchange cited international precedents, like the EU’s guarantee of a basic bank account. It also referenced former U.S. President Donald Trump’s executive order and lawsuit against JPMorgan over debanking.
