Australian Regulator Concludes Banks Had No Сollusion to Freeze Bitcoin Companies’ Accounts

News and Analysis

According to Australian Financial Review, the Australian Competition and Consumer Commission (ACCC) has concluded the local banks did not go into huddle by blocking their services to several bitcoin companies. The regulator said no further investigation of the matter is required.

The publication references to the letter by the ACCC’s chairman Rod Sims to senator Matthew Canavan, who had earlier requested the investigation to be carried out.

September 2015, bank accounts of nearly twenty companies engaged in cryptocurrency businesses were closed with no explanation. Back then, many suspected the banks colluded to prevent further development of their potential competitors. Senator Canavan requested the regulator to investigate the case.

The ACCC stated back then it had sent inquiries to the involved banks. The regulator conceded possible conspiracy, which is prohibited under the entity’s regulations.

However, following the investigation, the ACCC rejected the idea of possible callusion. The letter sent to Canavan says there is no evidence that banks could collude for some reason to close bitcoin companies’ accounts.

The letter also states that the banks, according to the feedback to the inquiries sent, acted independently.

“The available material also suggests that banks have made their decisions at different times, and with different outcomes,” the letter reads.

The letter also references to several instances, comparing a 2011 case when a bank rejected to cooperate with a cryptocurrency company in 2011, while another one made similar decision in 2015. Moreover, the regulator stressed, some banks continue servicing bitcoin companies, as they consider them individually.

While the investigation is broadly criticized by some politicians and bitcoin companies, who claim it was not scrupulous enough, the regulator insists the information is completely trustworthy.

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