Bitcoin trader Allan Flynn resolved his first complaint with The Australia and New Zealand Banking Group Limited (ANZ) for being unilaterally unbanked in 2018 due to his occupation as a Digital Currency Exchange (DCE).
The settlement comes 20 months after the Canberra resident first filed complaints with the ACT Civil and Administrative Court against ANZ.
In the agreement, the ANZ indicated that it closed its accounts due to the risk of money laundering and terrorist financing (ML / FT) that it perceived among the exchanges. It also acknowledged that the act of unseating Flynn could “have constituted unlawful discrimination contrary to sections 7 (1) (p) and 20 of the Discrimination Act of 1991.”
However, ANZ denied any responsibility saying that if it had “discriminated against Mr. Flynn by closing his accounts, that discrimination was reasonable under the circumstances and therefore legal.”
The ANZ statement also admitted that it closed its account upon detecting DCE activity without contacting Flynn for further information on its activities. Flynn argues that such discrimination is illegal under Canberra law which states that, “It is against the law for someone to discriminate against you because of your profession, trade, occupation or vocation.”
Although this first battle is complete, it will take the Westpac bank to court next Thursday for a second complaint.
Westpac closed its bank account in 2019 citing the same ML / TF concerns about him as a cryptocurrency trader.
Flynn told Cointelegraph that the case was important as it will be the first time that banks will be forced to definitively say whether they will serve Bitcoin traders. “All I’m asking for is a fair chance,” said.
Flynn also plans to cite the human rights violations committed by the banks for discriminating against him and his occupation. He feels this is the right way to take over by calling for more regulations and hopes that a victory could force policy changes at the national level or perhaps even at the international level.
“A victory against the banks could have broader implications for discrimination in occupations.”
He also reported that the Court’s ruling will enjoy wide public scrutiny, while an advance agreement could help change the policy due to a partial admission of guilt. However, he is concerned that a loss could lead to more Bitcoin traders being unbanked.
His case is far from the only one. Just last month, Rebecca Schot-Guppy, CEO of Fintech Australia, told the Senate thate up to 91 members of his organization had been unbanked without apparent cause or means of appeal.
The Australian Transaction Analysis and Reporting Center (AUSTRAC) has issued increasingly specific regulations since 2015 on how DCEs should operate and be treated by law.
Importantly, AUSTRAC has made clear that AML anti-terrorism laws they do not force banks to close the accounts of cryptocurrency traders.
Flynn believes that the behavior of the ANZ and Westpac suggests that “the banks do not want competition” and that if the DCEs were allowed to operate unimpeded, “they would break the speed limit and surpass traditional banks.”