A Bitcoin Trader in Australia Is Supposedly Rejected by Over 90 Banks

In Australia, a Bitcoin dealer recently stated that she had been denied by 90 institutions throughout the country.

Michaela Juric has been trading virtual currency for seven years, but her business is now at risk due to banking institutions refusing to do business with her. Juric listed Commonwealth Bank, NAB, and Suncorp as banks that have declined to serve her during a parliamentary hearing of the Australian Senate's Select Committee on Australia as a Technology and Financial Centre.

“As of yesterday, I was debanked and barred from 91 banks and financial institutions,” she explained. “There have been cases where de-banking has resulted in me being unable to obtain utilities, phone, or internet services, which I believe is really concerning.”

Debanking in Australia

In Australia, the practise of a bank refusing to continue providing client service has become so prevalent that it is referred to as 'debanking.' Customers of Juric, for example, received warning calls from their banks or were simply debanked. Aus Merchant, a digital currency brokerage, has been debanked four times in the last year.

Mitchell Travers, the company's managing director, stated that the issue was driving the company to transition to offshore banking. Travers also informed the committee that the big four banks implemented the strategy as a temporary tool to stave off competition.

“With the banks' anti-competitive attitude, it's a way of buying them time,” Travers explained. “It may be regarded a stopgap measure for them as they educate and discover a more meaningful approach to access the space.”

Other businesses have also been impacted by the practise, which they label "anti-competitive." Senator Andrew Bragg of Australia, who chairs the committee's enquiry, said the committee is putting together a plan to handle debanking.

Debanking in India

While debanking was carried out covertly by Australian banks, it also occurred in India, albeit with a bit more respectability. In May, the Reserve Bank of India (RBI) urged informally that lenders discontinue their relationships with cryptocurrency exchanges and traders. The request is being made in view of India's persistent regulatory uncertainties surrounding the country's burgeoning cryptocurrency business.

Numerous cryptocurrency exchanges in India faced difficulties securing payment options as banks began to cut links. As a result of the payment gateways' withdrawal, transaction speeds slowed, overloading India's biggest exchanges with client complaints. However, after a period of time, the RBI clarified its position on the informal statement, essentially revoking the prohibition.

Support us!