Bitcoin regulations will be scrutinized by a Senate investigation

The survey will also look at a phenomenon known as ‘debanking’, where non-bank businesses that compete with banks are dropped as customers by traditional banks, often citing risk or regulatory concerns. .


In the cryptocurrency sector, for example, the Australian Banking Association previously told the Senate inquiry that without proper regulation, digital currency exchange providers “risk becoming a virtual haven for financial transactions. criminals and terrorists”.

However, debanking goes beyond cryptocurrencies, and the Australian Competition and Consumer Commission has said it is a problem in the forex market.

Fintech Australia chief executive Rebecca Schot-Guppy said the “anti-competitive” unbanning was also affecting tech-based wealth management and payment companies. “Debanking is a big issue in fintech, one we’ve been championing with Canberra for six months,” she said.

Ms Schot-Guppy also said the overhaul of cryptocurrency regulations was “crucial” to providing greater certainty for the rapidly growing industry.

Sen. Bragg said in a speech Wednesday that the committee had been told that unbanking was linked to an uncertain political environment, and that it would investigate how regulators were enforcing existing laws in this area. “Our mandate is broad – to better understand unbanking issues, including its causes and significance,” said Senator Bragg.

Business Briefing

Start the day with top stories, exclusive coverage and expert opinion from our top business journalists delivered to your inbox. Register here.

Norman D. Briggs