Australian crypto exchange BTC Markets has entered a partnership with Mastercard, allowing it to accept card payments. This will mean more options for users and a positive step toward tackling debanking on Mastercard’s behalf.
Wider Range of Banking Options
Under the terms of the agreement, Aussies will be able to deposit and withdraw Australian dollars without fees via a broad range of means. Prepaid, direct debit and credit card payments will now be available on the exchange, whereas previously BTC Markets only permitted bank transfers:
The strategic merchant partnership is also about solving the issue of debanking, where a financial institution terminates, or denies, services to a client. While the practice is not illegal, a reason must be given for the termination. Typically, a bank will claim it seeks to mitigate risk by debanking a client, particularly in cryptocurrency-related cases.
Integrating traditional financial services with blockchain technology may be a remedy to this issue.
Past Debanking Cases in Australia
Allan Flynn, the owner of Australian exchange BitcoinCanberra, managed to settle a complaint against ANZ bank in October 2021 after being suddenly debanked. It took 20 months for Flynn to reach this outcome and appeared to be a turning point in the crypto industry’s fight against the practice.
Following this case, AUSTRAC – Australia’s anti-money laundering regulator – issued a warning to banks closing unsuspecting accounts. The financial watchdog stated that “businesses vulnerable to exploitation should not automatically have their accounts closed simply to avoid managing risk”.
Banks are expected to assess risks on a case-by-case basis, without bias towards crypto-related businesses.