It is reported that an Australian crypto entrepreneur is filing a lawsuit against two banks for booting his cryptocurrency exchange business off their ledgers.
According to the Australian Financial Review's report, Allan Flynn has filed a lawsuit against two of Australia's commercial banks, ANZ and Westpac, due to discriminating against him for his crypto business and cutting him off with almost no warning.
It is reported that Flynn operates a Bitcoin OTC desk that services 450 customers. The AFR noted that the banks rejected Flynn since they didn't like the sound of Bitcoin. And this isn’t the first time: it is obvious that at least 20 of Flynn's bank accounts have been closed for the past three years.
"How am I supposed to run a lawful business if I can't get a bank account?" Flynn reportedly told the AFR.
It is somehow troublesome for the crypto industry. Last week alone, crypto influencers defended Twitter's right to boot President Donald off the platform, citing the freedom of its terms of service.
However, it's no fun when it comes to one of their own.
Crypto has always had a tough time with banks. Couples of banks have long refused to let their customers transfer money from exchanges.
As of March of last year, India had prohibited banks from servicing crypto exchanges. The lifting of the ban meant that Indians could directly interact with crypto exchanges but rather sourcing their Bitcoin from elsewhere.
Such "crypto-phobia" is part of what resulted in Bitfinex and Tether to seek banking services from Panamanian "shadow bank" Crypto Capital. The companies later sued Crypto Capital for stealing their money.
However, US banks have started to warm up to crypto over the past year. JP Morgan currently supplies Coinbase and Gemini with its services.
Crypto sometimes gets to ban the banks. June 2020 witnessed Paxful banned trading from the Bank of Venezuela, citing US sanctions.
Moreover, some crypto companies have become banks in the US. Anchorage, a crypto platform for institutional investors, this month became the US's first federally chartered digital asset bank. And last year saw Kraken was the first crypto company to be a crypto bank - albeit operating under a state charter.