June 29 (Cointime) - Australia's Treasury has warned that cutting services to cryptocurrency companies could have negative consequences for the industry's transparency. The government has acknowledged the seriousness of "debanking" and is encouraging banks to communicate their requirements to both existing and potential customers clearly and proactively prior to refusing or withdrawing banking services.

The Treasury has also advised Australia's four major banks to publish guidance applicable to crypto exchanges and to work closely with regulators, banks and the affected sectors to ensure that the implementation of the agreed-upon recommendations is effective and achievable.

The move to protect the local crypto industry comes after the Commonwealth Bank of Australia said it would restrict certain payments to crypto exchanges over scam risks and Westpac banned customers from transacting with Binance crypto exchange.