Binance Australia suspends AUD fiat services, citing issues with third party

Cryptocurrency exchange Binance Australia has informed users it has suspended Australian dollar services after its local payment services provider Zepto was instructed to stop support for the exchange.

On May 18, Binance Australia tweeted that Australian dollar PayID deposits were suspended and bank transfer withdrawals would also be impacted “due to a decision made by our third-party payment service provider.”

“We understand from our third-party payment service provider that Bank Transfer withdrawals will also be impacted and we will advise users on timeline when this is confirmed,” it said.

“AUD deposits by bank transfers are no longer available to Binance users in Australia,” a Binance spokesperson confirmed in a statement to Cointelegraph, reiterating that the halt is in immediate effect, though withdrawals will still be open for an unknown period of time.

Binance said is now working to find an alternative provider to continue offering Australian dollar deposits and withdrawals to its users. The ability to buy and sell crypto using credit or debit cards is still available, it added.

A spokesperson for Zepto told Cointelegraph it “processes payments for Binance Australia.”

“Our partner, Cuscal, instructed us to offboard Binance,” Zepto added. “We are currently working with Binance to support them through this process.”

In a separate statement, Cuscal told Cointelegraph: “we are focused on supporting the industry in protecting Australians from financial crimes and scams.”

“Cuscal has, and will continue to, terminate any clients or their customers and/or merchants that do not meet our strict requirements,” it added.

“Notably, you can still buy and sell crypto using credit or debit card and our Binance P2P marketplace will also continue to operate as usual. Rest assured that your funds are safe through the Secure Asset Fund for Users (SAFU), an insurance fund that offers protection to Binance users and their funds in the event of extreme situations,” said Binance

Despite the announcement, Australian dollar deposits and withdrawals are seemingly still able to be undertaken for the time being. Cointelegraph’s Australian staff were able to deposit a small amount of AUD using PayID and withdraw from the exchange into an Australian bank account at the time of writing.

Related: Australia marks first FX transaction using a CBDC as eAUD pilot continues

The suspension comes a month after the Australian securities regulator cancelled the financial services license of Binance Australia Derivatives after it reviewed Binance’s local operations.

The service halt potentially affects a significant amount of Australian crypto users and investors.

In a December interview with The Sydney Morning Herald, Binance Australia’s then-CEO Leigh Travers claimed the exchange had hit one million users.

Around 3.3 million Australians are estimated to own crypto, according to November 2022 research from Finder.

Asia Express: Alameda’s $38B IRS bill, Do Kwon kicked in the assets, Milady frenzy

Update (May 18, 7:25 am UTC): This article has been updated to include a response from Zepto.

Update (May 19, 2:00 am UTC): This article has been updated to include a response from Cuscal.

Sourced from

Written by Jesse Coghlan on 2023-05-20 06:04:47.

Leave a Reply
Previous Post

Revolut launches business offering in Australia, seeks banking license

Next Post

Ripple CEO Praises XRP Community, Here’s Why

Related Posts