In an attempt to confront the recent restrictions imposed by Australian banks on crypto payments, Blockchain Australia, an industry body, has taken a stand, proclaiming its intention to tackle the issue “head-on by using real data.” Banks in Australia, such as the Commonwealth Bank (CBA), have been facing criticism for blocking payments to cryptocurrency exchanges. Just last week, CBA imposed partial restrictions, citing concerns about scams and customer losses. Similarly, Binance Australia halted Australian dollar deposits and withdrawals due to a decision by a third-party payment service provider.
Jackson Zeng, director of Blockchain Australia, strongly criticized these restrictions, stating that they signify “a profound curtailment of economic freedom in Australia.” He stressed that individuals have the inherent right to decide how and where to use their finances and that banks should facilitate rather than impose restrictions on these decisions.
As part of the efforts to address this issue, Blockchain Australia has planned a roundtable discussion on June 27 during Australian Blockchain Week. Prominent policymakers, possibly including Assistant Treasurer and Minister for Financial Services Stephen Jones, as well as representatives from the Australian Securities and Investment Commission, will be invited to join the discussion.
Blockchain Australia believes that these blanket restrictions carry a high cost, not only limiting the use of consumers’ own money but also steering those at risk of scams or fraud towards other, potentially harder-to-detect types of scams. To counteract this, the industry body plans to implement an education program for consumers on the benefits of crypto and how to identify scams and good actors within the space. They also aim to gain recognition from banks for these practices.
Moreover, Blockchain Australia suggests that banks could provide opt-in protection and education to users or employ targeted approaches, focusing on specific categories of at-risk customers with appropriate education and notification. This approach may be considered more effective in reducing crypto-related scams without the need for payment restrictions.
The future of the blockchain industry in Australia could significantly depend on the outcome of these discussions and the willingness of banks to adopt more targeted methods to address scams, while maintaining economic freedom for customers within the space. The current restrictions undoubtedly limit the potential of this revolutionary technology, but with thorough regulation, dialogue and educative efforts, embracing cryptocurrency’s full potential may soon become a reality.
Source: Coindesk
