Coinbase Accuses Australian Banks of Systemic Debanking of Crypto Firms

Coinbase’s submission to the House of Representatives Standing Committee on Economics presents a damning portrait of Australia’s financial landscape. The exchange contends that “debanking”—the withdrawal of banking services—is no longer a rare operational issue but a deliberate, systemic feature. The primary targets, according to the complaint, are the fintech sector and businesses utilizing digital assets and blockchain technology. The mechanisms are twofold: unilateral account closures and transaction restrictions that specifically halt or limit transfers involving cryptocurrencies.

The exchange directly implicates Australia’s “Big Four” banks—Commonwealth Bank, Westpac, ANZ, and National Australia Bank—which control the majority of transaction accounts and payment rails. “In Australia the Big 4 banks have implemented policies that impede on people’s abilities to use their own money, and remove banking facilities from consumers and businesses,” Coinbase wrote. This concentration of power, the complaint argues, transforms a simple account closure into a potent economic weapon, effectively creating an “unlawful regulatory ban” that can shut entire lawful sectors out of the formal economy.

Beyond the immediate business impact, Coinbase frames the debanking issue as a fundamental erosion of trust. While banks often cite Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) concerns to justify closures, Coinbase claims “the opacity of these decisions has engendered a crisis of confidence in the Australian financial system amongst its everyday users.” The exchange’s stark warning underscores the perceived gravity: “There is nothing that degrades trust in an economy faster than being told you cannot use your own money.”

The timing of the complaint is critical. It comes as Coinbase itself faces new regulatory requirements to obtain an Australian Financial Services Licence from the Australian Securities and Investments Commission (ASIC), following legislation proposed last November. This adds a layer of urgency to Coinbase’s calls for banking sector reform, positioning the exchange as advocating for a fair and transparent system it must now operate within. The Australian Treasury has previously acknowledged the debanking problem, stating it was “working with stakeholders to ensure transparency and fairness,” but concrete legislative action has yet to materialize.

To bolster its case, Coinbase points to international models designed to prevent financial exclusion. In the European Union, a basic bank account is guaranteed for all legal residents. Canada allows almost anyone to open an account, regardless of employment status or bankruptcy history. The exchange also cites the United States, where former President Donald Trump signed an executive order last August directing regulators to prevent politically or crypto-related debanking. Notably, Trump recently filed a $5 billion lawsuit against JPMorgan (JPM), alleging the bank closed his accounts over his political views—a case that parallels the accusations of opaque, discretionary closures in Australia.

Central to Coinbase’s submission is a call to finally legislate five specific transparency measures. These were originally recommended by the Council of Financial Regulators in 2022 following a Senate inquiry and received government support, but were never enacted. The measures would compel banks to: document specific reasons for debanking a customer; provide those reasons to the affected party; ensure access to internal dispute resolution procedures; provide a minimum of 30 days’ notice before closing core banking services; and self-certify their adherence to these requirements. For Coinbase, the implementation of these rules is a necessary step to inject accountability and due process into a process it views as arbitrary and damaging to innovation.