Australian Banks Imposing ‘Unlawful Regulatory Ban’ on Crypto, Says Coinbase

Coinbase, one of the world’s largest cryptocurrency exchanges, has accused major Australian financial institutions of imposing an ‘unlawful regulatory ban’ on the digital asset sector. The exchange claims that banks are arbitrarily blocking or freezing customer transfers to and from crypto platforms, effectively creating a ‘shadow ban’ that operates outside of established legislative and regulatory frameworks.

In statements made to Australian media and regulatory bodies, Coinbase VP of International and Business Development, Nana Murugesan, highlighted that while banks cite consumer protection and the prevention of high-profile investment scams as their justification, their actions are disproportionate and lack transparency. Banks such as ANZ, Westpac, National Australia Bank (NAB), and Commonwealth Bank (CommBank) have recently introduced stricter measures, often refusing to process transfers to crypto exchanges.

Coinbase argues that authorized financial institutions, including crypto exchanges, operate under strict AML/CTF (Anti-Money Laundering/Counter-Terrorism Financing) obligations as mandated by AUSTRAC. By unilaterally severing banking ties or blocking transactions, the traditional finance sector is acting as a de facto regulator, bypassing the authority of the Australian Securities and Investments Commission (ASIC) and the Reserve Bank of Australia (RBA).

Murugesan emphasized that the arbitrary blocking of funds unfairly targets legitimate businesses and consumers who are engaged in lawful financial activities. The exchange stressed that if regulatory concerns exist, they should be addressed through formal channels and new legislation, rather than through anti-competitive actions that stifle innovation and exclude the digital economy.

The exchange has called upon the Australian Treasury and financial regulators to urgently intervene, asserting that the banks’ actions risk damaging Australia’s reputation as an innovative financial market while hindering the necessary work currently underway to develop clear, comprehensive cryptocurrency regulation.

Source: Australian Banks Imposing ‘Unlawful Regulatory Ban’ on Crypto, Says Coinbase