Australia Takes Initiative to Address De-Banking Challenges Faced by Crypto Exchanges
In 2023, crypto exchanges have been facing challenges as governments and banks crack down on the industry. However, the Australian government is taking action to tackle the issue of de-banking faced by crypto exchanges. The Treasury has released its responses and recommendations to address this problem, with the aim of improving transparency and fairness in the banking sector and ensuring that customers in emerging sectors have access to banking services.
Key Points:
- The Treasury has defined de-banking as a situation where a bank declines to offer its services to customers due to certain risk factors.
- The Council of Financial Regulators has given four recommendations to the government, including data collection, transparency and fairness measures, guidance by specified banks, and capability uplift.
- Banks should document the data about de-banking, maintain transparency and fairness, and provide a 30-day notice before withdrawing their services.
- The Australian government expects banks to issue guidelines for crypto exchanges before de-banking them.
- Binance, the world’s largest crypto exchange, has suffered from de-banking in the Australian market, leading to the loss of its banking partner and disabling of Australian dollar bank transfers.
Hot Take:
The Australian government’s initiative to address de-banking challenges faced by crypto exchanges is a positive step towards ensuring fairness and access to banking services for customers in emerging sectors. However, the crackdown on crypto in other jurisdictions remains a concern for the industry as a whole.
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