Coinbase Accuses Australian Banks of Systemic De-Banking in Crypto Crackdown

VADODARA, February 3, 2026 — Coinbase has formally accused Australia's largest commercial banks of systematically blocking financial services to cryptocurrency companies. According to Decrypt, the exchange detailed these allegations in a submission to the Australian House of Representatives Standing Committee on Economics. The company specifically named the country's "big four" banks as engaging in what it terms "de-banking" practices. These practices include unilaterally closing crypto-related accounts and restricting transactions without transparent justification.

Investigation: Structural De-Banking in Australia's Financial System

Coinbase's submission represents a direct challenge to Australia's banking establishment. The company claims these restrictions create a structural problem within the nation's financial infrastructure. According to the official filing, these banking barriers undermine Australia's economic competitiveness. They also compromise financial system integrity by pushing legitimate businesses toward less regulated channels. The Australian Prudential Regulation Authority (APRA) has historically maintained conservative guidelines for banks engaging with digital assets. This regulatory posture creates the framework for current banking restrictions.

Market analysts interpret this development as part of a global pattern. Consequently, financial institutions worldwide are reassessing crypto exposure amid regulatory uncertainty. The timing coincides with heightened market volatility across digital asset classes. Underlying this trend is a fundamental tension between innovation and traditional financial oversight. Australia's approach mirrors regulatory caution seen in other developed economies. However, the systematic nature of these banking restrictions represents an escalation.

Market Context & Historical Precedent

Historically, banking restrictions have preceded significant market consolidation phases. The 2017-2018 cycle saw similar de-banking in Asian markets. That period culminated in the collapse of several crypto-fiat gateways. In contrast, the 2021-2022 cycle featured more sophisticated regulatory frameworks rather than outright bans. Australia's current stance appears to blend both approaches. Banks are implementing restrictive measures while formal regulations remain under development.

This development occurs alongside other significant market shifts. For instance, recent margin delistings by major exchanges signal liquidity consolidation. , institutional declarations of a full crypto winter echo previous bear market patterns. These parallel developments create a complex regulatory and market environment.

Technical Architecture & Price Action

Market structure suggests banking restrictions create immediate liquidity friction. This friction manifests in reduced on-ramp capacity for Australian investors. On-chain data indicates decreased transaction volumes from Australian IP addresses over recent weeks. The Bitcoin price currently tests the $78,308 level with 0.70% 24-hour movement. Critical Fibonacci support sits at the 0.618 retracement level of $75,000. A breach below this level would invalidate the current consolidation structure.

Technical analysis reveals a clear Fair Value Gap (FVG) between $80,000 and $82,000. This gap represents unfilled buy orders from previous market movements. The Relative Strength Index (RSI) currently reads 42, indicating neutral momentum with bearish bias. The 50-day moving average at $81,500 acts as immediate resistance. Volume profile analysis shows concentrated liquidity around the $77,000 level, creating a significant order block.

By The Numbers

Why It Matters

Banking access represents the fundamental plumbing of cryptocurrency markets. Restrictions create immediate operational challenges for exchanges and service providers. Consequently, these barriers increase compliance costs and reduce market efficiency. Institutional liquidity cycles depend on reliable banking partnerships. The current Australian situation demonstrates how quickly these relationships can deteriorate. Retail market structure suffers when on-ramps become constrained.

Long-term implications extend beyond Australia's borders. Other jurisdictions may adopt similar restrictive approaches if Australia's model proves effective for risk management. This creates a potential domino effect across global crypto banking infrastructure. The structural integrity of entire financial systems becomes compromised when legitimate businesses cannot access basic services. Historical cycles suggest such restrictions often precede regulatory clarity rather than replace it.

Expert Commentary

"Systematic de-banking creates artificial liquidity barriers that distort market efficiency. When traditional financial institutions restrict access without transparent risk frameworks, they push activity toward less regulated channels. This ultimately increases systemic risk rather than mitigating it. Australia's approach appears reactive rather than strategically calibrated to innovation."— CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Market structure suggests two primary scenarios based on current developments. The first scenario involves regulatory clarification within 3-6 months. This would likely restore banking access and trigger a liquidity surge. The second scenario features prolonged restrictions extending through 2026. This would force Australian crypto businesses to develop alternative banking solutions or relocate operations.

• Bullish Invalidation Level: $85,000 resistance break would confirm renewed institutional confidence and potential resolution of banking restrictions.
• Bearish Invalidation Level: $75,000 Fibonacci support breach would indicate deepening market fear and extended banking restrictions.

The 12-month institutional outlook depends heavily on regulatory developments. Australia's final approach will influence other Asia-Pacific jurisdictions. If restrictions ease, institutional capital could flow more freely into Australian crypto markets. If restrictions tighten, Australia risks becoming a regulatory outlier. This could impact its position in global digital asset markets for the next 5-year horizon.