In response to recent restrictions imposed by local banks on cryptocurrency payments, industry stakeholders in the blockchain sector in Australia are joining forces to address the issue. Blockchain Australia, the industry body representing the blockchain community in the country, announced its intention to tackle the problem head-on using real data.
Several instances have come to light where banking partners have blocked payments to cryptocurrency exchanges in Australia. Commonwealth Bank (CBA) recently implemented partial restrictions, citing concerns over scams and customer losses. Similarly, Binance Australia suspended Australian dollar (AUD) deposits and withdrawals via bank transfers due to a decision made by a third-party payment service provider.
Jackson Zeng, the director of Blockchain Australia, expressed deep concern over the restrictions imposed by banking institutions, stating that they represent a significant curtailment of economic freedom in Australia. Zeng emphasized that every individual has the inherent right to decide how and where to use their finances, and that the role of banks should be to facilitate these decisions, rather than impose restrictions on them.
To address the issue, Blockchain Australia has planned a roundtable discussion on June 27, coinciding with Blockchain Week in Australia. The aim of the discussion is to engage with policymakers, potentially including Assistant Treasurer and Minister for Financial Services Stephen Jones and the Australian Securities and Investment Commission. The industry body intends to present its concerns and explore potential solutions to the problem at hand.
Blockchain Australia argues that blanket restrictions have significant adverse effects, limiting consumers’ use of their own money and potentially leading those at risk of scams or fraud into alternative illicit activities that may be harder to detect. In response, the organization plans to launch an educational program for consumers, focusing on cryptocurrencies and their benefits.
This initiative will provide guidance on identifying scams and recognizing reputable actors within the crypto space. Blockchain Australia seeks to secure acknowledgment and adoption of these practices by the banks.
The announcement suggests that a more effective approach to reducing crypto-related scams without imposing payment restrictions would involve banks offering opt-in protection and education to users or implementing targeted approaches for specific at-risk customer categories, coupled with appropriate education and notifications.
As the cryptocurrency industry continues to evolve, Blockchain Australia is determined to advocate for the rights of individuals to engage freely with cryptocurrencies while mitigating risks. By fostering dialogue and promoting education, the industry body hopes to foster a more conducive environment for crypto enthusiasts in Australia.
