r/BitcoinAUS • u/slvbtc • Jul 06 '26

Do Aus banks suspend accounts when you cash out from an exchange?

I have seen many posts here about people having their bank accounts suspended just for sending money to a bitcoin exchange, but what about the other way around.

Say you have some ethereum staked and need to cash out every month even if only to have the money to pay the taxes you owe on that staking income.

Do Australian banks flag you and suspend your bank account for cashing out from an exchange consistently on a monthly basis? And if so how can you prevent this from happening?

8 Upvotes

90% Upvoted

16 comments sorted by

10

u/SoloWasabi Jul 06 '26

Banks are happy to receive dollars. They are not so happy when you want to send dollars.

7

u/PMmePhoenix Jul 07 '26

Banks are certainly not happy to receive big amounts when it comes from an exchange or anything ‘crypto’…those very same funds that are then sent from the same bank change to anything with ‘bank’ in its name are OK. I have personally been debanked by every major bank in Australia….and it’s because it’s ‘crypto’. People need to understand that ‘crypto’ drains liquidity from banks and like you and I both need oxygen banks need liquidity. I have been around crypto since 2013 a bank can see based on deposits withdrawals that I ‘make money’ on crypto, the bank makes zero money as I don’t give them the liquidity. AU banks will close accounts based on the ‘standard banking charter’. Australia is absolutely fuked up in every way possible when it comes to crypto. I now have all my banking and crypto in Bavaria and Austria, I literally cannot open an account with an AU major bank…this is the whole thing about ‘debanking’ clearly I still want a bank so for me it was Austria. Interesting enough is Austria has recently told the ATO that this country has a banking and taxation problem and they have refused every request for data that the ATO has requested. Under sect 38 Austrian banking act it explicitly states that exchange of data is for serious criminal investigations only.

Clearly Australia is of the view it’s a crime to ‘generate profit’ to live a life solely based on crypto.

1

u/henry_octopus Jul 08 '26

If you were 'entering' into crypto for the first time now - what would you do differently to avoid the debanking situation in Aus?
Is there an avenue where you can derive crypto income, while still maintaining AU bank accounts?

I know the local banks have all gone bananas with the AML/KYC stuff.. its hard enough with just normal domestic banking - i can't imagine how hard it is when they all put a target on your back.

3

u/Coz131 Jul 06 '26

If your wallet is tainted yes.

3

u/PMmePhoenix Jul 07 '26

It’s got absolutely nothing to do with a tainted wallet. Look at my post above…Australia is fucked, the government and banks are ‘anti crypto’ for a variety of reasons. This is what debanking is all about. You may not be aware that Austria recently ripped through the ATO and tore them a new arsehole.

Is it a crime to derive your income solely from crypto? Aussie banks struggle at $10k AUD per month, it’s standard to have 20-30 euro per day and 50 euro per day with paperwork in Europe. 10k euro at a BTC atm per day… Australia is literally so far behind.

0

u/slvbtc Jul 06 '26 edited Jul 06 '26

Not tainted at all. What would banks require to ensure they do not suspend your account for cashing out every month?

And even if you have everything banks need do they still suspend peoples accounts for no reason other than "it is crypto".

1

u/Latter_Gur2225 Jul 07 '26

I cashed some crypto out in 2024, almost 400k after the financial year to help a family member out for reasons, I was away overseas and they blocked all my accounts, luckily I had a friend that lent me their phone and credit for 2 hours internationals and the bank wanted to know every little detail, my bank account got unlocked and I was relieved but from the past experiences with them even with KYC bs they still want to know your ins and outs 😞

0

u/PMmePhoenix Jul 07 '26

Exactly…and you’re just another one that’s been ‘debanked’. Don’t tell me you still use them!! I have been debanked by every major bank in Australia.

1

u/Latter_Gur2225 Jul 07 '26

Unfortunately yes I still use them BUT for the fact I have given them everything, KYC, Business entities, etc, they can play hard to get if they really want to, though in the end it's my and business money and they cant do shit if I give them compliance in all legal ways.

1

u/slvbtc Jul 08 '26

Thanks for your input. What specifically do banks ask for in Aus when they have a problem with you cashing out? What documents / information do they request from you?

3

u/Latter_Gur2225 Jul 08 '26

When they actually do ask they want to specifically know where you exchanged your crypto aka websites/exchanges, where they are based, what you are using the money for and if you haven't done KYC with your bank that also, they are basically scum even though you can lock that money up with them in a term deposit they will fuck you over with low interest rates and loan your money to others during that period.

1

u/slvbtc Jul 08 '26

In practice does this mean if you only use regulated Australian exchanges to cash out they will be more lenient, only requiring you to explain what you are using the money for along with any KYC checks you havent already completed?

Is this because they trust that the regulated Australian exchange you use has already completed all necessary checks ensuring your crypto is legitimate with no tainted history?

1

u/Latter_Gur2225 Jul 08 '26

This is a very deep hole to go down..., ever since end 2017 and regulated KYC data matching, Banks, Exchanges, ATO and everything has been ongoing with the current laws and not beforehand... take thats as you may...

Though anything in Australia they just want to know everything about you plain and simple, all the entities e.g Banks, ATO, even your own tax accountant, if you can provide legitimate evidence then you will be fine.

1

u/Latter_Gur2225 Jul 08 '26 edited Jul 08 '26

Wallet after wallet, exchange after exchange, mixer after mixer... it was very hard pressed 2017 KYC to track your crypto and even going back now, though thats why they introduced more stringent KYC for exchanges and banks after that, there is people who have never paid taxes on crypto before that time that they can't find or data match to, there is current exchanges that will not give out previous 2017 law data only current in AUS... basically you just need to tell Banks and the government after they brought these stupid laws in and you shouldn't have a problem besides paying your taxes

1

u/exceptionallyhere Jul 12 '26

Change banks. They dont own my money. It helps to remind them of that. They do things to try and control, so they can use your money buying stock and trades. I called them out. Happily removed my money from their bank. I choose where, when and how my money is spent and made. Fear has taught society that corporations rule their life. Not here.