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- A human rights and discrimination case against an Australian bitcoin dealer is about to be heard in court
- Mr. Flynn’s case will be heard by the ACTCAT’s Discrimination Tribunal in late October
- The commission is expected to make recommendations to the federal government on new regulations for the industry
An Australian cryptocurrency trader is preparing to go to court for a human rights and discrimination case that, if successful, could have far-reaching implications for the bitcoin-averse banking sector in Australia. The ACT Civil and & Administration Tribunal will hear a case brought by Allan Flynn of Canberra against two of the country’s largest banks over their decision to discontinue doing business with him because he ran a cryptocurrency trading platform next month.
Mr. Flynn blames ANZ and Westpac for canceling his bank accounts
Mr. Flynn claims that ANZ and Westpac both violated his human rights by canceling his bank accounts because he was a cryptocurrency dealer. Both banks are fighting the case and have chosen not to comment because the case is still before the tribunal and customer confidentiality is a concern.
Mr. Flynn’s complaint, which will be considered by ACTCAT’s Discrimination Tribunal in late October, comes amid a broader debate about the debanking of Australian small business owners who deal in the bitcoin field. Fintechs and small businesses that had been debanked were heard at a recent Senate hearing into Australia as a Financial and Technology Centre, including Bitcoin Babe Michaela Juric, who told the inquiry she had been debanked 91 times, put on a terrorism watchlist, and bullied by AUSTRAC.
The committee is anticipated to suggest new restrictions for the largely unregulated sector to the federal government, in the hopes that Australian banks will be more willing to work with enterprises in the sector. Because of the lack of regulation of cryptocurrency traders and platforms, as well as worries about adherence to know-your-customer, anti-money laundering, and counter-terrorism legislation, the banks said they do not support platform operators or peer-to-peer trading.
Bank’s policy on Cryptocurrency
The bank’s cryptocurrency policy does not prevent clients from buying or accepting bitcoin, but it does not normally bank businesses like dealers, issuers, or exchanges of cryptocurrency because those types of enterprises are outside of its risk appetite.
If the court decides that Mr. Flynn was discriminated against because of what he did for a living, the Bitcoin Human Rights lawsuit could help to change that. The applicant holds a protected attribute within the meaning of…the Act because he is a bitcoin trader; and Cryptocurrency trading is a profession, trade, occupation, or calling, according to Mr. Flynn’s lawyers in court records.
Mr. Flynn’s lawyer, Richard McGilvray of law firm Lexmerca, said in a statement that he is unable to comment because the case is pending in court, but that he is looking forward to advocating for Mr. Flynn on this critical topic. Mr. Flynn detailed his debanking experience in a testimony to the Senate investigation in late June, noting that the banks moved against him shortly after he launched his bitcoin trading platform in 2017.
For family oversight considerations, another bank canceled my brother’s term deposit account without warning because he was a signatory. The same bank contacted his new banking service provider with unknown information after debanking him in 2019, forcing the second bank to terminate my account. Mr. Flynn did not name any banks in his contribution to the Senate probe.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
