Banking bans are not the answer to crypto scams: RMIT experts

Dr Aaron Lane, Senior Lecturer, RMIT Blockchain Innovation Hub 

Topics: cryptocurrency, banking, regulation  

“Banks are under increasing pressure to tackle the growing problem of scams involving cryptocurrency.  

“Imposing time delays, declining transactions, and placing deposit limits are all mechanisms for banks to retake control and limit their legal and regulatory risks. 

“These measures may not be ideal for customers and digital currency exchanges, but a risk-based approach is better than outright debanking. 

“It is important to see these measures in the wider context.  

“Australia’s current regulatory grey zone is leading to several issues impacting digital currency exchanges and consumers.  

“While reform in Australia has stalled, the global regulatory environment is rapidly shifting with digital currency exchange licensing regimes passed across countries in Asia, Europe, and the Middle East. 

“The Australian Parliament must take crypto law reform out of the too hard basket.”  

Dr Aaron Lane is a Senior Lecturer in Law with the RMIT Blockchain Innovation Hub. He is a lawyer researching the legal and economic implications of blockchain technology and cryptocurrency and has appeared before Senate inquiries on these topics.  

Dr Natalia Ilyushina, Research Fellow, RMIT Blockchain Innovation Hub 

Topics: cryptocurrency, digital assets, investment 

“Scams using cryptocurrency are a major problem for consumers, but it is important that Australian banks do not overreact.”  

“It might be tempting for banks to put blanket bans on certain crypto transactions.  

“This is unlikely to deter Australians from investing in digital assets and may push customers into other higher-risk offshore providers and ultimately make the problem worse. 

“Banks, digital currency exchanges, and the wider crypto industry must work together to solve this problem.” 

“Education around new technology is vital to empowering consumers and reducing opportunities for scammers and illicit activities.” 

Dr Nataliya Ilyushina is a Research Fellow with the RMIT Blockchain Innovation Hub and ARC Centre of Excellence for Automated Decision-Making and Society. Her current research focuses on decentralised autonomous organisations (DAOs), labour markets, and skills.