Australian Crypto Users Continue Facing Banking Restrictions Despite Regulatory Progress
According to Cointelegraph, Australian cryptocurrency users continue encountering banking barriers when conducting transactions with exchanges despite years of regulatory development. A Binance survey of 1,900 Australians released on Thursday found 58% of respondents wanted easy access to deposit funds into exchanges without limits. Additionally, 22% had changed banks to make buying crypto easier.
Matt Poblocki, general manager of Binance's Australian and New Zealand operations, told the publication that seamless access to financial services directly affects participation, confidence and trust in the market. The lack of consistent access introduces barriers that can slow adoption and limit growth. Commonwealth Bank, Australia's largest financial institution, announced a limit of 10,000 Australian dollars ($6,527) per month for customers sending funds to crypto exchanges.
OKX Australia CEO Kate Cooper reported that institutions still deny banking services to crypto businesses and prevent transfers to crypto exchanges. She noted that while adoption rates in Australia exceed 30%, banking friction creates frustration among customers. Binance users can buy and sell crypto using credit or debit cards but cannot deposit or withdraw Australian dollars via bank transfer, reflecting what Poblocki described as a broader industry challenge.
Why Banking Restrictions Matter For Crypto Market Growth
These banking limitations create direct consequences for Australian crypto market development and user experience. Cooper explained that exchanges regularly receive phone calls from customers asking which banks will allow crypto transactions and what their options are. The restrictions force users to search for alternative banking partners or payment methods.
SmartCompany reports that some crypto businesses and their employees face debanking, where banks close accounts and refuse access to services for individuals flagged as possible risks. Kraken's general manager for Australia, Jonathon Miller, told the publication that this creates concentration risks since local exchanges and startups often have only a limited set of banks willing to work with them.
The banking barriers have persisted despite regulatory progress for crypto in Australia. Crypto exchanges were brought under Anti-Money Laundering laws in 2018, requiring registration with AUSTRAC. The country launched its first Bitcoin exchange-traded fund in June 2024, followed by an Ethereum ETF in October 2024. We recently reported that institutional adoption has accelerated throughout 2025, with major financial players expanding cryptocurrency product offerings.
Industry Implications And Regulatory Solutions
The banking restrictions reflect broader tensions between traditional financial institutions and the growing cryptocurrency sector. Miller described the situation as highlighting why crypto exists in the first place, noting that if intermediaries can unilaterally cut access to basic financial services, then the financial system itself has fundamental issues. The restrictions risk driving activity offshore to less regulated venues.
Industry executives believe clear legislation could resolve these issues. Cooper pointed to draft legislation that could be released by the end of the month, explaining that proper regulation will help distinguish good actors from bad actors and give banks better guidance on who operates within the regulated financial services industry. Cointelegraph reports that Australia's government under the Labor Party has proposed a new crypto framework regulating exchanges and addressing debanking ahead of the federal election.
The proposed regulations would require crypto exchanges and platforms to meet the same basic governance standards as other financial service providers. This includes minimum capital requirements to help prevent collapses like FTX, which left Australian investors stranded when the platform collapsed in 2022. AUSTRAC released updated guidance in March stating that banks are not mandated to have blanket bans on crypto. Miller said clear legislation and regulatory guidance are essential to deal with debanking, calling for a more nuanced approach to due diligence that distinguishes between bad actors and legitimate businesses building responsibly.
