Background of Allan Flynn’s Case
Allan Flynn, a Bitcoin trader operating in Australia, has decided to take banks to court. His complaint is directed at two of the country’s significant commercial players: ANZ and Westpac. Flynn claims that he is a victim of systematic discrimination, seeking a significant compensation of 250,000 Australian dollars (approximately 192,000 USD).
Allegations of Discrimination
Flynn voiced his frustrations in a report by the Australian Financial Review, stating that more than 20 banks have closed the accounts linked to his cryptocurrency exchange over the past three years. He lamented,
“How am I supposed to run a lawful business if I can’t get a bank account?”
With a registered platform servicing over 450 customers, it raises eyebrows when banks refuse to maintain his accounts.
The Regulatory Landscape
Despite the setback, Flynn’s crypto exchange is fully compliant with local regulations, being registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC). Nonetheless, banks seem unfazed, as evidenced by Westpac’s past responses to Flynn, suggesting the closures were linked to ongoing investigations into cryptocurrency fraud.
Pursuing Justice
Flynn’s struggle isn’t new; he previously escalated his complaints to the Australian Financial Complaints Authority (AFCA) in 2020, only to have the matter dismissed as Westpac was acting within its terms and conditions. Back then, Westpac even offered him a mere 250 Australian dollars as a form of compensation for the abrupt account closures, which he claims he still hasn’t received.
A Broader Trend in Banking
It’s worth noting that Flynn’s situation isn’t isolated to Australia. Instances of discriminatory banking practices towards crypto exchanges have emerged globally. For instance, in India, despite the Supreme Court’s decision to lift a central bank ban on crypto transactions, reports of banks refusing services to crypto businesses persist. The situation in Latin America echoes this trend, where stringent regulations led to significant account closures affecting crypto exchanges.
