Fear or greed: Why are Australian banks cutting off Bitcoin businesses?

Throughout 2015, Bitcoin exchanges, mining, and trading firms in Australia received letters from their bankers. The message was the same; the commercial banks were withdrawing their services. The banks gave little explanation for the move, but these termination of service notices set a dangerous precedent that other countries could follow.

“Our members have been unable to obtain any formal clarification on the reasons for closure, except for references to policy or risk. Just what policies or risks these are have not been specified,” Ron Tucker, ex-chairman of industry body The Australian Digital Currency Commerce Association, complained back in September.

At that point the Nationals Senator Matthew Canavan wrote to the Australian Competition and Consumer Commission (ACCC) to request for an investigation into a likely collusion amongst commercial banks to stifle what could turn out to be their competition.

“It appears to me to be an amazing coincidence that a number of large banks have all of a sudden decided to deny services to fledgling Bitcoin and digital currency operators,” Canavan observed in the letter.

Labor Senator Sam Dastyari, who chaired the Senate Economics References Committee hearing into digital currency, also noted the development. “I am concerned that there is an allegation that Australian

Read more ... source: TheBitcoinNews

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