Crypto banking in Australia faces persistent barriers as banks restrict transfers and close accounts, creating “debanking” risks for exchanges and users; clear, fit-for-purpose legislation and coordinated guidance from regulators, banks and industry are needed to restore access and trust.
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Major banks restrict transfers and impose limits on crypto deposits, creating friction for users.
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Debanking incidents affect customers, employees and exchange operations, concentrating risk in a few willing banks.
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Legislation, AUSTRAC guidance and industry collaboration can distinguish legitimate services from bad actors.
Crypto banking Australia: persistent bank restrictions and debanking risk hinder adoption—read how proposed legislation and regulator guidance can restore access. Learn more.
Crypto bosses say the government now needs to bring in clear rules, so regulators and banks can distinguish the good from the bad actors.
What are the current banking barriers for crypto users in Australia?
Crypto banking Australia is hindered by bank-imposed limits, account closures and transfer refusals that block deposits and withdrawals to exchanges. These actions reduce convenience, can push activity offshore, and create concentration risks by leaving a small set of banks to serve crypto businesses and customers.
How widespread are deposit limits and account restrictions?
Recent industry surveys show many Australians face limits when sending funds to exchanges. One survey of 1,900 Australians reported 58% wanted unrestricted deposit access and 22% had switched banks to buy crypto. Major banks have set monthly limits for transfers to exchanges, prompting frequent customer enquiries and friction for retail participation.
Executives at major exchanges report ongoing denials of banking services. These actions include blocks on transfers, limits on deposit amounts, and, in some cases, account closures—often described as debanking—when banks consider a customer or business higher risk.
Why does debanking occur and what are its consequences?
Debanking happens when banks close accounts or restrict services due to perceived risk from crypto-related activity. This creates concentration risk because local exchanges and startups often have a limited set of banks willing to work with them.
Consequences include:
- Reduced consumer confidence and higher friction for ordinary users.
- Operational strain for exchanges that must maintain alternate on-ramps/off-ramps.
- Potential migration of trading to offshore, less-regulated venues.

Australia’s Treasury said in March that its new crypto regulations have four priorities. Source: Australian Department of the Treasury
How can legislation and regulator guidance fix crypto banking blocks?
Fit-for-purpose legislation and clearer regulatory guidance are the primary remedies industry leaders cite. Draft legislation expected soon aims to clarify which entities operate within the regulated financial services framework and to address debanking through defined obligations and improved due diligence expectations for banks.
AUSTRAC’s updated guidance in March clarified banks are not required to impose blanket bans on crypto, but banks still retain discretion based on risk assessments. Industry leaders argue that consistent rules will help banks separate legitimate businesses from bad actors and reduce arbitrary denials of service.
What are exchanges doing while the rules evolve?
Exchanges maintain alternative payment routes—such as card on-ramps and third-party solutions—while engaging with banks and regulators to find sustainable, compliant banking relationships. Some platforms have also introduced services for self-managed superannuation funds to broaden crypto access within regulated retirement frameworks.
Frequently Asked Questions
Can banks legally refuse crypto-related transfers in Australia?
Banks in Australia can set their own risk policies and may refuse or limit crypto-related transfers, but AUSTRAC guidance does not mandate blanket bans. Clearer legislation and regulator guidance are expected to standardize practices and reduce arbitrary restrictions.
What is “debanking” and who is affected?
Debanking is when banks close accounts or cut services due to perceived risk. It affects individual customers, exchange employees and crypto businesses, concentrating operations among a few banks willing to provide services.
When will new crypto rules arrive in Australia?
Draft crypto legislation has been signalled by the government and may be released soon; timing depends on the parliamentary process. The proposed framework aims to regulate exchanges and improve banking access for legitimate providers.
Key Takeaways
- Persistent bank friction: Limits and account restrictions remain a major barrier for crypto users in Australia.
- Debanking risk: Account closures and service denials concentrate risk and can push activity offshore.
- Legislation and collaboration: Clear laws, AUSTRAC guidance and collaboration among government, banks and industry are the best path to restore access.
Conclusion
Australia’s crypto sector continues to grow, but banking barriers and debanking incidents create material friction for users and exchanges. Clear, fit-for-purpose legislation and coordinated regulator guidance—combined with ongoing industry engagement—are essential to separate legitimate providers from bad actors and to rebuild reliable banking pathways. COINOTAG will monitor developments and publish updates as the regulatory framework evolves.
Published: 2025-09-05 | Updated: 2025-09-05 | Author: COINOTAG