Coin Trader Refused by 91 Banks and ‘Bullied’ by Austrac

[khinkali]

Nothing surprising to many people here, but it's interesting that an Australian Senate inquiry is taking evidence on this. She's had >40000 trades on LocalBitcoins and LocalCoinSwap.

https://www.smh.com.au/business/ban...hlist-bullied-by-austrac-20210908-p58pt4.html

 

[Martin Everson]

Her own fault sadly she should have known better.

 

[Willblack]

Her own fault sadly she should have known better.

While I skimmed over the article and didn't read it in much detail, nor am I familiar with the case, I'll still ask - how is this her own fault?

It's beyond absurd. The crypto industry is headed in the direction of the EMI industry - overregulation, and overregulation will simply lead to the sector going back to the dark grey area.

Like the whole security theater is fun and games, submitting the bulls**t reports is all fun and games, but banks closing accounts for dealing with crypto is beyond me. The business loses money -> the bank loses money -> the government loses money. How does this make sense?

 

[khinkali]

It's not only overregulation, it's amateurish regulation.

Bitcoin Babe is highly traceable and has thousands of satisfied customers. She is registered with AUSTRAC and collects KYC, as is required by them. She uses GreenID (which provides KYC services for banking, loan, gambline, and crypto providers) and more.

The biggest consumer problem regarding Bitcoin Babe is that she has impersonators and fake affiliates, which she takes action against.

As is happening in other parts of the world, regulators supposedly embrace a business for a specific activity while at the same time, regulators in the same jurisdiction quietly make it very hard for the legitimate provider to operate.

One other thing that irks me. AUSTRAC publish cancelled, suspended and refused Digital currency exchange provider registrations. They reveal how many hundreds of providers they have registered, yet they don't list them. So when a user sees a "registered digital currency exchange regulated by AUSTRAC" claim, they can't verify it. That isn't consumer protection, it's inept.

I don't mean to hate on AUSTRAC exclusively. Regulators in many other jurisdictions are botching things just as badly.

 

[Martin Everson]

how is this her own fault?

Crypto business is a high risk activity to a bank. Plus article states the Cryprocurrency sits outside Australia's regulatory framework. So its her own fault. She can live and learn. There is a good reason why many banks don't like crypto businesses and that is money laundering and other criminal activities associated with it. Furthermore banks are private institutions and can make their own decisions.

P.S Just going by article. Don't know in and out of Australian rules over crypto and her case...sorry.