Despite the Australian government’s push for crypto regulation, Australians are still facing significant hurdles when transacting in cryptocurrency. This is according to a recent Binance survey, which captured the views of 1,900 Australian crypto users.
In the report, 58% of participants indicated they would prefer fewer banking restrictions on crypto transactions, and 22% even went so far as to change banks to make buying crypto easier.
Australian banks still limiting crypto transactions
Most Australian banks impose limits on crypto transactions. The country’s largest bank, the Commonwealth Bank, has a stringent crypto transactions policy that discourages outgoing transfers.
The bank imposes a monthly crypto limit of A$10,000 ($6,594) per customer per month. This limit applies when sending money to crypto exchanges, but it also extends to various other crypto merchants. On top of that, the bank holds all outgoing crypto transactions for up to 24 hours, regardless of the amount.
Most other Australian banks also have a similar policy. For example, Westpac has an A$10,000 monthly limit and a 24-hour holding period. On top of that, transactions above A$5,000 may trigger a review, and there’s also a fraud-detection system designed to block high-risk transactions based on the exchange and the user. Unfortunately, this also means that regular crypto buyers may be flagged as high-risk and their transactions blocked.
When announcing the policy, Westpac Group Executive of Customer Services and Technology Scott Collary noted that all this was meant to prevent fraud.
“Digital exchanges have a legitimate role to play in the financial ecosystem. But since the rise of digital currency, we’ve noticed that scammers are increasingly using overseas exchanges,” Mr Collary said.
“The trial of our new security measures will better protect customers from scams. In particular, it will target investment scams, which have a devastating impact on our customers.”
De-banking “risky” businesses and individuals
Besides limiting and blocking transactions, Australian banks go as far as blocking user accounts.
In an April case, a Westpac user deposited $50,000 into Westpac and later on in the month tried to send A$30,000 to Australian crypto exchange CoinSpot. However, the bank blocked the transfer and froze the account, locking the owner out.
In an interview with 2GB radio, the account owner, Tim, stated that he simply wanted to buy Bitcoin, as he anticipated a price increase. However, the bank staffer wouldn’t accept that as a genuine reason, stating, “We’re not going to be able to facilitate this payment if you’re not forthcoming and honest with us.”
Westpac CEO, Anthony Miller, would later apologise to Tim when addressing the incident on the radio. “We apologise to Tim, and I’m apologising now to Tim that it didn’t quite work as we wanted,” Miller said. He then went on to state that the incident happened due to Westpac’s broader anti-scam measures.
Tim later stated that this period coincided with a Bitcoin surge, and it ultimately cost him A$6,500 in profits.
This incident highlights the friction that Australians continue to face when buying crypto, and in the Binance report, Matt Poblocki, General Manager of Binance Australia & New Zealand, pointed it out.
“De-banking adds significant friction to the buying and selling of digital assets, discouraging many, or worse still, sending others to transact in unregulated offshore jurisdictions,” Mr Poblocki said.
“It is important for the government, banks, and industry to come together to ensure Australian investors have seamless and secure access to the digital asset ecosystem, without unnecessary barriers that hinder fair participation.”
Progress, but not enough
The report on the crypto and banking friction in Australia comes despite several years of regulatory progress. In 2018, the Australian Transaction Reports and Analysis Centre (AUSTRAC) brought crypto exchanges under the country’s anti-money laundering laws. These required exchanges operating in the country to register, verify customer identities, and report suspicious transactions. Essentially, it made them operate under the same laws as other financial institutions.
The government followed this up by releasing a national blockchain roadmap in 2020, which was a form of commitment to blockchain, crypto, and related technologies. It set a path for the government to work with blockchain providers to drive adoption and was much welcomed in the industry.
Over the years, various regulatory bodies like ASIC have also been providing guidance on how existing financial laws apply to crypto, promoting both consumer protection and innovation.
And following the May 2025 elections, the Albanese government set out to bring crypto under the Payment Systems Act, and the bill passed Parliament and received Royal Assent on September 4, 2025.
However, despite these milestones, the banking industry still imposes lots of restrictions on crypto transactions, even though there are no industry regulations mandating the same.
The government’s plan to deal with de-banking
The current situation necessitates more regulation that can help banks adopt a more unified approach that promotes crypto adoption instead of stifling users.
In that view, the Albanese government is pursuing various ways to address the issue and stabilise the crypto industry in the country.
In March 2025, the government released a statement on its plan to handle the digital assets industry. The plan involves coming up with two frameworks, one for Digital Asset Platforms (DAPs) and another for payment stablecoins. There’s also a plan to review the regulatory sandbox and establish initiatives aimed at unlocking the potential benefits of the digital asset industry.
In the statement, the government clearly addresses the de-banking issues and acknowledges that they have negative effects on users and negatively affect the Australian economy. The report also states that the government is currently in consultations on draughting policies and the implementation framework.Meanwhile, crypto adoption in Australia continues to grow, despite the restrictions. Figures from Australian exchange Independent Reserve show that approximately 31% of Australians have embraced crypto, a 4% growth compared to 2024. If the government delivers on its promise to address de-banking, this will boost adoption further, encourage innovation, and promote economic growth
