Australians Still Face Banking Hurdles Despite Crypto Growth

The cryptocurrency market in is experiencing rapid growth, and by 2025, more than 32% of Australians are expected to hold digital assets. But banking rules still make it hard for people to participate fully. A recent survey of 1,900 Australians found that 58% want to be able to deposit money into without any restrictions, and 22% have changed banks to facilitate easier transactions. 

Banks commonly refer to these restrictions as “debanking.” They close accounts or limit services for individuals and organizations that deal with cryptocurrencies, as they are concerned about fraud and potential legal issues.

Industry Leaders Talk About large hardys

Executives at crypto platforms, such as Matt Poblocki from Australia and New Zealand, argue that irregular access to banks undermines customer trust and hinders industry growth. Debanking makes it challenging for crypto companies to find new banking partners, thereby increasing the risk of concentration. 

Jonathon Miller from Kraken Australia said that even workers can have their accounts closed if they are involved in the crypto sector. These rules may encourage people to use less-regulated offshore platforms, which could be detrimental to both consumers and Australia’s financial system.

Regulatory Progress Not Enough

Even with improvements in regulations, such as crypto platforms being required to follow since 2018 and the launch of BTC and ETH ETFs in 2024, banking remains a challenging endeavor. and other major banks impose strict monthly transfer limits on crypto sites, such as AUD 10,000. 

These steps were taken to stop fraud, and they have cut crypto-related fraud losses from $221 million in 2022 to $71.2 million in 2024. However, they also make things more hard for honest investors, as transactions are typically delayed or flagged for manual review.

Demands For Clearer Laws

To address these issues, industry executives are advocating for more transparent rules and regulations. The proposed law will assist banks offer consistent services by making it easier to distinguish between reputable cryptocurrency firms and those with higher risk. 

Recent court decisions, such as the Finder Wallet case, have clarified the legal position of . This is a step toward a more clahead defined regulatory environment. People believe that regulators, banks, and crypto companies need to collaborate to address these significant issues.

The Way Forward

As cryptocurrencies become more prevalent in Australia’s financial system, particularly in retirement savings plans such as Self-Managed Superannuation Funds, the demand for banking reform increases. With SMSF crypto holdings growing by 41% over the past two years, it’s essential to address issues to facilitate mainstream acceptance. 

Australia can secureguard consumers while also encouraging innovation in the cryptocurrency sector by making it easier for people to collaborate and by clarifying the rules. This will assist the industry grow without causing hardys.