Australia: Banks' 'virtual asset barriers' remain…Industry says "clear standards needed"

Although the virtual assets (cryptocurrencies) industry in Australia was brought into the regulatory framework several years ago, critics say barriers to conducting transactions via banks still exist.

On the 5th, virtual asset-focused media Cointelegraph reported that "Australian users face bank service blocks when using exchanges and related businesses." Industry insiders emphasized the need for clear regulations so that banks and regulators can distinguish legitimate operators from illegal actors.

In fact, a local survey conducted by Binance showed that 58% of respondents wanted "access to exchanges without deposit limits," and 22% said they had changed banks to purchase virtual assets. Matt Poblocki, head of Binance Australia & New Zealand, explained, "Inconsistent bank accessibility can do more than cause inconvenience; it can push activity offshore and expand regulatory blind spots."

Kate Cooper, head of OKX Australia, also pointed out that "traditional financial institutions are still refusing bank services to virtual asset firms," noting, "Australia's largest bank, the Commonwealth Bank, limits customers' transfers to virtual asset exchanges to AU$10,000 per month (about 9.08 million won)." She added, "Although virtual asset adoption in Australia has exceeded 30%, customers are experiencing significant inconvenience due to these restrictions."

Jonathon Miller, head of Kraken Australia, criticized, "Virtual asset firms become reliant on a small number of banks, increasing concentration risk," and said, "If intermediaries can unilaterally block financial services, it could fundamentally destabilize the financial system."

The industry points to prompt legislation as a solution. Cooper said, "The draft bill to be released soon should be able to present clear criteria to banks by distinguishing legitimate operators from illegal activities," expressing hope. Miller also stressed, "Detailed due diligence and regulatory guidelines are needed," and emphasized, "A regulatory framework that involves cooperation among government, banks, and the industry is necessary."