Debanking threat looms over Australian crypto and fintech entrepreneurs
The American crypto sector has recently been up in arms about the problem of debanking. The Australian industry says it's an issue here too.
If you’re considering launching a business in the booming cryptocurrency market, be prepared to potentially lose access to your bank accounts.
That’s the warning from industry executives, investors and entrepreneurs, who claim that “debanking” is rife within the sector.
“Every person who has been involved in this sector, whether that be as a service provider or as an investor, has at some point either been debanked or flagged for debanking,” said Ed Carroll, head of markets at MHC Digital.
Debanking occurs when a bank shuts down — or suspends indefinitely — the accounts of a customer. Communication from the bank typically focuses on where the funds should be transferred, with little or no explanation for the closure. Victims say the process lacks transparency, with no meaningful opportunity to respond.
