Binance Australia suspends AUD deposits

The Australian unit of the Binance bitcoin exchange said it would suspend deposits in Australian dollars due to actions by its payment service provider.

Fellow Binancians,

We regret to inform you that with immediate effect we are unable to facilitate PayID AUD deposits for Binance users due to a decision made by our third party payment service provider. We understand from our third party payment service provider that Bank…

— Binance Australia (@Binance_AUS) May 18, 2023

According to the company, the PayID AUD real-time bank transfer service, supported by over 100 institutions, has ceased functioning. The company intends to find an alternative provider.

Users on the platform can withdraw funds in fiat, as well as buy and sell digital assets using Visa debit and credit cards. Binance P2P also continues to operate normally.

We have confirmed with our local payment partner that our users can continue to withdraw AUD and we will update with any further changes on timing as we know more. Users are still able to buy and sell via debit and credit card. https://t.co/ReS6V7FbZu

— Binance Australia (@Binance_AUS) May 18, 2023

According to Financial Review, Binance’s partner is Cuscal.

On the same day Westpac Bank barred customers from transacting with Binance. The move was taken as part of measures to protect customers from fraud.

“Digital asset exchanges must play a legitimate role. We have blocked access to some overseas platforms that are more commonly used for fraud,” said a bank spokesperson.

In April 2023, the Australian Securities and Investments Commission cancelled the local Binance crypto-exchange’s license to provide financial services. Until 21 April, Binance Australia Derivatives users were required to close all derivative positions. 

Earlier, the company announced its withdrawal from Canada due to tighter requirements on trading platforms in the country.

On 27 March 2023 the CFTC filed a lawsuit against the bitcoin exchange and its CEO Changpeng Zhao, accusing it of unregistered trading of derivatives, providing services to U.S. citizens and sanctioned individuals, and failing to comply with anti-money-laundering rules. 

In response, Binance chief Zhao stated that the CFTC’s allegations contain an incomplete presentation of the facts, and his company disagrees with the characterization of many points. Later he condemned ‘coerced crypto-regulation’ by regulators.