Australia's Competition Watchdog Investigates Bitcoin Bank Account Closures

Australia's banks are reportedly being investigated by the Australian Competition and Consumer Commission (ACCC) following the recent account closures of Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term businesses.

At least 17 Bitcoin startups reportedly had their accounts closed, forcing several out of business. An industry body spokesman reportedly said at the time that the closures were a result of tougher rules on anti-money laundering (AML) and terrorist financing (TF) in the country.

But Senator Matthew Canavan, who requested the investigation, suggested that the actions were anti-competitive because digital currency competes with banking business models.

ACCC chairman Rod Sims told The Australian Financial Review that the Commission has started an investigation, which is in its early stages. It has requested an explanation from the banks for the moves.

The country's major banks have themselves been exploring the potential of Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term technology, which powers Bitcoin and other digital currencies, to improve their own processes. National Australia Bank (NAB) recently joined the other three members of the 'big four' already exploring the blockchain, entering a startup-led consortium of global banks looking to develop and standardize the technology.

Australian Bankers' Association (ABA) CEO Steven Munchenberg denied the allegations of anti-competitive behavior, instead pointing to the AML/TF risks posed by Bitcoin.

"We take every suggestion of anti-competitive behavior incredibly seriously. It is a very serious allegation to make against the industry, so at this stage we will be focusing on proving that those allegations are totally unfounded," he said, adding that the allegations "are just nonsense."

He further argued that those alleging the "anti-competitive conspiracy" theory will have to bring evidence. He also claimed that digital currency proponents have approached him with arguments that they shouldn't have to comply with AML/TF regulations because "it is terribly expensive and a terrible burden for them." Such behavior, he said, would only further heighten the banks' concern.