Coinbase Takes on Australia’s Big Four Banks Over Crypto and Fintech Crackdown
Coinbase just drew a line in the sand—and it's aimed directly at Australia's banking establishment.
The crypto giant is publicly challenging the 'Big Four' banks—Commonwealth Bank, Westpac, ANZ, and NAB—over what it calls a coordinated campaign to stifle digital asset innovation. Sources say the exchange has lodged formal complaints with regulators after multiple fintech partners reported sudden account closures and restricted payment rails.
Banking's Old Guard vs. Finance's Future
This isn't just about a few frozen accounts. It's a structural fight. The Big Four control roughly 75% of Australia's lending market—and they're using that dominance to squeeze crypto-native companies out of the financial system. Overnight payment blocks. 'Enhanced due diligence' that never ends. Outright refusal to bank entire sectors.
Coinbase's move signals a shift from quiet negotiation to open confrontation. The exchange is framing this as anti-competitive behavior disguised as risk management—a classic move from institutions that still think blockchain is a spreadsheet error.
Why This Battle Matters
Australia represents a critical beachhead for crypto adoption in the Asia-Pacific region. With clear regulatory frameworks emerging, the timing is perfect for expansion—unless traditional banks succeed in cutting off access to basic banking services.
Coinbase's challenge tests whether Australia's pro-innovation rhetoric matches reality. If regulators side with the banks, it sets a dangerous precedent: legacy institutions can veto technological progress through back-office bureaucracy.
The Finance Jab You Expected
Let's be real—this is the same banking sector that needed taxpayer bailouts during the GFC now positioning itself as the guardian of financial stability. Nothing protects profits like pretending innovation is too risky to allow.
Watch this space. Coinbase just turned a regulatory skirmish into a public referendum on who gets to build the future of finance. The banks are betting on inertia. The crypto industry is betting on inevitability. One side is going to be very wrong.
Banks tighten controls as crypto rules advance
Coinbase said that the Big Four banks – Commonwealth Bank, Westpac, ANZ, and National Australia Bank – have control over the majority of transaction accounts and payment rails. As a result, account closures can be a way to exclude businesses from the formal economy.
The company said such outcomes are more akin to an indirect regulatory ban than to routine risk management.
The submission stated that the banks relied heavily on anti-money laundering and counter-terrorism financing requirements to justify closures. However, Coinbase warned that customers often do not receive a clear explanation, a notice period, or access to dispute resolution.
Over time, this lack of transparency has eroded confidence in the financial system, particularly among fintech users and small businesses.
Coinbase also cited data that, as early as 2021, as many as 60% of fintech firms in Australia had been denied banking services. The exchange said that the issue has not been resolved, despite repeated inquiries and public commitments by policymakers.
The complaint comes as Australia looks to tighten oversight of crypto platforms. Proposed legislation WOULD impose the burden of an Australian Financial Services Licence on major exchanges, resulting in a new compliance cost.
Lawmakers face pressure to enforce transparency rules
The exchange urged lawmakers to act on five transparency measures recommended by the Council of Financial Regulators based on a Senate inquiry. Although the government had backed such measures in August 2022, they were never legislated.
The proposals would require banks to document the reasons for de-banking, share the reasons for debanking with the affected customers, provide access to internal dispute resolution, give at least 30 days’ notice before closing Core accounts, and self-certify their compliance with the framework.
Coinbase argued that these measures would provide a balance between controls to prevent financial crime and fairness and due process.
The treasury has acknowledged the issue in previous consultations and said it was working with banks and industry groups to increase transparency. However, Coinbase said that voluntary engagement has not achieved meaningful change, given the amount of market power held by the largest lenders.
The exchange said ongoing debanking puts investment and reduced consumer choice at risk and undermines Australia’s reputation as a regional fintech hub. It also said that inconsistent access to banking services makes compliance difficult, not that it increases safeguards.
Coinbase pointed to overseas models, where access to basic banking is protected. In the European Union, legal residents have a basic account guaranteed. In Canada, banks are required to open accounts for most applicants, including those without jobs or with prior bankruptcies.
In the United States, political scrutiny has increased following federal action to prevent viewpoint-based and crypto-related debanking. Coinbase said these developments are proof of an emerging international consensus that access to finance should not be limited without legitimate cause.
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