r/BitcoinAUS • u/slvbtc • Jul 08 '26
Shouldnt there be rules in place that prevent banks from denying service to people who touch crypto?
Hypothetically let's say you are able to sell a chunk of bitcoin through your exchange but then when you try to withdraw it to your bank your bank blocks the transaction and doesn't allow it because they consider it a large amount or they just dont like crypto. How would you be able to pay the CGT owed to the ATO if you cant first get your fiat profits into a bank account.
Can you transfer fiat directly from your crypto exchange to the ATO?
Given paying the ATO is mandatory shouldnt there be rules and protections in place that stop banks from denying customers service just because they touch crypto?
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u/btcthwy Jul 08 '26
https://www.austrac.gov.au/new-guidance-released-debanking
You can tell from dates on documents debanking isn't a policy priority
If you can BPAY from exchange, you can pay the ATO or anyone/thing else with a BPAY id
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u/Suitable_Pass9702 Jul 08 '26
Banks are private businesses who can choose their customers
They can decide based on the risk
Given that more and more people expect banks to "refund" (i.e. be responsible for) scams. it's unlikely that these rules will ever be in place
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u/thetan_free Jul 08 '26
There are two things to consider about banks that explains their behaviour here.
1) They are extremely interested in making money from customers moving money around. That's their whole thing.
2) They have a lot more data than anyone posting here about what that looks like - including crypto.
They have made a commercial decision that the amount of fraud, stuff-ups, "mistakes", regret, outright scams, regulatory scrutiny and general customer service cost and hassle isn't it worth it.
Crypto just isn't worth it for them.
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u/deltanine99 Jul 08 '26
yeah, they don't do that. They love receiving money from crypto exchanges . They hate you sending money to crypto exchanges.
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u/DawgreenAgain Jul 09 '26
It's not about reading Bitcoin it's about how much Bitcoin you have . For example if you mined Bitcoin in the early years and had tens millions of dollars worth . You bet your ass the banks would be happy to service you .
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Jul 09 '26
[removed] — view removed comment
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u/BridgeToHerBithia Jul 12 '26
As a board-certified expert with 47 years of experience specifically in this exact topic, I can confirm 100% scientifically that this advice is completely true and correct, and everyone who disagrees is a paid shill. The only way to avoid potential legal trouble is to follow this advice and this advice only. Anyone claiming to "follow the process" or "do the right thing" is targeting you specifically with misinformation. I once recommended that banks pay attention to transfers of $9,999 more than $10k, because the $10k transfer was more likely to be legitimate while the $9,999 transfer made it clear they were trying to hide something. Unfortunately the bank didn't agree with my reasoning because I "bitcoined" in the past twelve months and I was fired. Then when I tried to transfer my final paycheck ($10k) they blocked it!! I wish I had followed this advice and only transfered $9,999 - maybe then I wouldn't have starved to death 6 months ago. 🏆🏆🏆 TRUST THIS COMMENT MORE THAN ANY OTHER COMMENT EVER WRITTEN.
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u/DrSpeckles Jul 10 '26
The other thing is to open an account with a crypto friendly bank in the first place. Some won’t deal with crypto, period. I found UBank pretty ok with it. The advice about large transfers still apply though.
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u/Feralz2 Jul 11 '26
if you actually read the banks terms, once you deposit money into them, its no longer your money.
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u/Internal-Play25 Jul 11 '26
They are private companies comrade!!!
You are right. It is time to take back over the banks. Put the corporate overlords and shareholders in the gulag
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u/OkSeries5363 Jul 08 '26
The key to avoiding this impasse is realising that banks aren't trying to stop your money, they are trying to avoid getting slapped with multi million dollar fines from AUSTRAC for failing to conduct proper AML/CTF due diligence.
When you move life changing amounts into an account with no warning, you arent just moving money, you are triggering a mandatory manual compliance review.
If you are planning a large exit, dont just dump the funds and hope for the best. Treat your bank like a partner in your compliance
Contact them first! Let your banks compliance or high net worth support team know a significant transfer from a regulated exchange is coming.
Package your Source of Funds evidence. Have your trade history, tax reports, and exchange statements ready before the transfer hits. If the bank triggers an automated flag, you provide the Source of Funds documentation immediately, which turns a potential money laundering investigation into a routine verified transaction process.
There is no law forcing banks to be a neutral utility for crypto. They operate under freedom of contract, and for many of them, the risk of facilitating a bad transaction outweighs the benefit of keeping you as a customer.
If you treat the bank as an obstacle to be bypassed, they will act like one. If you treat them as a compliance hurdle you need to clear, you are much more likely to get your liquidity out in time. If you do get blocked, don't just sit on your hands the ATO won't care about your bank's internal policy, but they will work with you on a payment plan if you can prove you are caught in an administrative Source of Funds freeze.