A recent survey reveals that Australian crypto users continue to face banking obstacles when dealing with exchanges and related businesses, with industry leaders arguing that clearer government regulations could be the key to resolving the issue.
The Binance survey, released Thursday and based on responses from 1,900 Australians, found that 58% wanted unrestricted, straightforward access to deposit funds into exchanges, while 22% reported switching banks to make crypto purchases easier.
Matt Poblocki, general manager of Binance’s Australian and New Zealand operations, told Cointelegraph that friction in accessing financial services directly impacts user participation, confidence, and trust in the market—ultimately creating hurdles that slow adoption and stifle growth.
“The lack of consistent access not only inconveniences users but risks driving activity offshore to less regulated venues —something that benefits neither consumers nor the broader financial system.”
Despite years of regulatory progress, Australian banks continue to create hurdles for crypto users and businesses. Since 2018, crypto exchanges have been subject to Anti-Money Laundering laws and must register with Australia’s financial intelligence agency, AUSTRAC. More recently, the country saw the launch of its first spot Bitcoin ETF in June 2024, followed by an Ether ETF in October 2024.
Crypto adoption has also been expanding into retirement savings. On Tuesday, Coinbase and OKX rolled out services tailored for self-managed superannuation funds, offering Australians new avenues to integrate digital assets into long-term investment strategies.
Still, banking barriers persist. OKX Australia CEO Kate Cooper — who previously worked in traditional finance at NAB before leading a crypto exchange — told Cointelegraph that banks often deny services to crypto businesses and block transfers to exchanges.
Even Australia’s largest bank, Commonwealth Bank, has capped crypto-related transfers at 10,000 Australian dollars ($6,527) per month.
“We constantly get calls from customers asking, ‘My bank won’t let me. Which bank will? How can I make this work? What are my options?’” Cooper said.
“I don’t know that it’s affecting adoption. And the reason being is that we have significant adoption rates in Australia, over 30% which means that Australians have been participating, but I think that the friction causes a lot of frustration with customers.”
In March, AUSTRAC issued updated guidance clarifying that banks are not required to impose blanket bans on crypto.
Still, some exchange clients and even employees continue to face debanking. Jonathon Miller, Kraken’s general manager for Australia, told Cointelegraph that the exchange has seen both customers and staff lose access to their bank accounts simply for engaging with the crypto industry.
Debanking occurs when a bank shuts down accounts and denies services to individuals or organizations it deems risky — a practice that drew attention in the U.S. during Operation Chokepoint.
Miller explained that crypto businesses in Australia encounter the same challenges, which leads to “concentration risks — since local exchanges and startups often have only a very limited set of banks willing to work with them.”
“It’s a stark reminder of why crypto exists in the first place: if an intermediary can unilaterally cut you off from basic financial services for trying to build financial independence, then the financial system itself is fundamentally broken.”
Poblocki noted that Binance has faced similar challenges in Australia. While users can still buy and sell crypto with credit or debit cards, they cannot deposit or withdraw Australian dollars via bank transfer — a limitation he says “reflects a broader industry challenge rather than an isolated issue.”
He added that Binance continues to offer alternative on-ramps and off-ramps while working toward more sustainable, long-term solutions.
Cooper echoed the concern, saying debanking “remains a massive issue in Australia for the crypto sector,” as banks routinely deny services to businesses operating in the space.
Legislation seen as the key fix
According to Cooper, the most effective way to remove banking barriers will be the introduction of fit-for-purpose legislation. She highlighted draft rules expected to be released later this month as a potential turning point for the industry.
“And what that will do is it will help sort the wheat from the chaff, the good actors from the bad actors, and it will give the banks more of an indication of who is operating within the regulated financial services industry.”
Earlier this year, Australia’s center-left Labor government proposed a new crypto framework aimed at regulating exchanges and addressing debanking, ahead of the federal election.
Miller emphasized that clear legislation and regulatory guidance are crucial to addressing debanking, along with lifting restrictions on the crypto industry and its participants. While some progress has been made, he noted it is “not universally accepted across the board yet.”
“What’s needed instead is a more nuanced approach to due diligence — one that distinguishes between bad actors and legitimate businesses building responsibly,” he said.
Poblocki agreed that legislation is key, adding that “collaboration between government, banks, and industry to provide regulatory clarity” will also be essential.
“Clear regulatory guidance, coupled with collaborative efforts across stakeholders, is the best way to resolve debanking.”
