Coinbase has formally accused Australia's 'Big Four' banks of systematically debanking cryptocurrency companies, labeling the practice an "unlawful regulatory ban" that threatens competition and trust in the economy. In a detailed submission to the Australian House of Representatives Standing Committee on Economics, the Nasdaq-listed exchange warned that debanking has evolved from a sporadic issue into a "systemic feature" of the financial landscape.
The exchange specifically named Commonwealth Bank, Westpac, ANZ, and National Australia Bank, stating their policies "impede on people's abilities to use their own money." Coinbase claims banks are using two primary methods: unilateral account closures and transaction restrictions that halt or limit transfers involving digital assets.
The complaint reveals that up to 60% of fintech businesses faced denial of banking services in 2021, an issue Coinbase says persists today. While banks often cite Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) grounds for closures, Coinbase argues the opacity of these decisions has created "a crisis of confidence in the Australian financial system."
The timing is critical as Coinbase faces new regulatory requirements to obtain an Australian Financial Services Licence from the Australian Securities and Investments Commission (ASIC) under legislation proposed in November 2025. The exchange is urging lawmakers to legislate five transparency measures recommended by the Council of Financial Regulators in 2022 but never implemented. These include requiring banks to document reasons for debanking, provide those reasons to customers, ensure access to dispute resolution, give 30 days' notice before closing core services, and self-certify adherence.
This international regulatory clash was mirrored in a heated confrontation at the World Economic Forum in Davos. Coinbase CEO Brian Armstrong and JPMorgan Chase CEO Jamie Dimon engaged in a public dispute over crypto regulation, with Dimon reportedly telling Armstrong, "You are full of s—" after Armstrong accused big banks of trying to shape U.S. crypto legislation to protect their own interests rather than consumers.
The core of this conflict centers on stablecoin yields. Coinbase currently offers approximately 3.5%–5% APY on stablecoin balances like USDC, while traditional bank savings accounts average only 0.01% to 0.45%. Banks, led by Dimon, argue that crypto platforms act like "shadow banks" offering bank-like services without the regulatory costs of FDIC insurance, capital reserves, and AML compliance. They claim high crypto yields pull deposits from traditional banks, reducing lending capacity.
Armstrong counters that this is simply competition, arguing banks have enjoyed a "captive audience for decades" while paying minimal interest. He maintains that stablecoins represent a more efficient technology that returns profits to users.
This tension is playing out in U.S. regulatory debates, particularly around the Clarity Bill, which could determine whether crypto firms face bank-style regulations or maintain their current operating models. The situation is complicated by Wall Street's divided stance—while Dimon remains skeptical, firms like BlackRock have embraced Bitcoin ETFs, and JPMorgan itself operates "Onyx," a private blockchain for internal settlements.
