Banks Block Crypto Access, Push Australians to Seek Alternatives

Australians continue to encounter financial friction in their interactions with cryptocurrency exchanges and related businesses, despite years of regulatory progress in the space. A recent survey by Binance, which polled 1,900 Australians, revealed that 58% of respondents desired unrestricted access to deposit funds into crypto exchanges, while 22% had switched banks to simplify crypto transactions. Executives from major crypto exchanges have highlighted that inconsistent access to financial services not only complicates user experience but also risks driving activity offshore to less regulated platforms, which could undermine both consumer protection and financial stability [1].

The banking system has imposed notable restrictions on crypto users. Commonwealth Bank, one of Australia’s largest financial institutions, has set a monthly limit of AU$10,000 ($6,527) for customers sending funds to crypto exchanges. OKX Australia CEO Kate Cooper, who previously worked in traditional finance at NAB, noted a recurring pattern: users contacting her firm to inquire about alternative banking options that permit crypto transactions. While she acknowledges that adoption rates in Australia remain strong—over 30% of the population is already engaged—she points out that these banking barriers often lead to customer frustration rather than a decline in participation [1].

The issue extends beyond individual users to crypto businesses themselves. Jonathon Miller, General Manager of Kraken Australia, stated that the firm has seen numerous clients and employees lose access to their banking services for engaging with the crypto sector. Known as “debanking,” this practice involves banks closing accounts or denying services to individuals or organizations deemed risky. Miller explained that such actions create concentration risks, as local exchanges and startups often have access to only a few banks willing to work with them. He stressed that this underscores the very reason crypto was developed: to offer a financial system that is not controlled by intermediaries who can unilaterally cut access [1].

Regulatory clarity remains a key solution to these challenges. Cooper emphasized that fit-for-purpose legislation could help distinguish between legitimate crypto businesses and bad actors, providing banks with clearer guidelines on whom to trust. The Australian government, under the ruling Labor Party, has proposed a new regulatory framework aimed at addressing these concerns ahead of the federal election. According to Treasury, the framework outlines four core priorities, although specific details remain under development. Miller added that more nuanced regulatory approaches are essential—ones that differentiate between responsible businesses and high-risk players—while also lifting restrictions on the industry and its participants [1].

Meanwhile, crypto is gradually finding its way into Australia’s retirement savings systems. On Tuesday, Coinbase and OKX launched services for Self-Managed Superannuation Funds (SMSFs), offering new pathways for Australians to include crypto in their retirement planning. The Australian Taxation Office (ATO) recently reported that crypto holdings in SMSFs dropped by 4% year-on-year, despite a significant rise in Bitcoin’s value. However, some analysts suggest that this figure may not reflect the true picture, as the data is based on tax filings due in May 2026. Over the past two years, SMSF crypto holdings have grown by 41%, indicating a steady increase in interest. The industry is now preparing for a potential surge in adoption as younger Australians, who show a higher inclination toward crypto, begin to approach retirement [1].

In the broader regulatory landscape, the Federal Court of Appeal recently dismissed ASIC’s appeal in the case of Finder Wallet’s “Finder Earn” product, affirming that it did not constitute a debenture and therefore did not require an Australian Financial Services License. This ruling is being viewed as a win for the crypto industry, offering clarity on how stablecoins and similar products may be treated under existing financial laws. As the industry awaits further guidance from ASIC and the government’s proposed legislation, the court’s decision is seen as a step toward a more defined and stable regulatory environment [2].

Source:

[1] Australians still feel bank 'friction' despite years of crypto progress (https://cointelegraph.com/news/crypto-exchange-users-australia-still-face-banking-barriers)

[2] Australia: Crypto in the Courts – ASIC v Finder Update (https://www.fintechlawblog.com/2025/09/02/australia-crypto-in-the-courts-asic-v-finder-update/)