In an email on Wednesday, Binance Australia informed users that they would no longer be able to move money on to the crypto exchange using the instant transfer PayID service or bank deposits.
Binance just got de-banked in Australia 📣
which country is next? pic.twitter.com/SiLBrj9pYu
— Liquidity Goblin (@liquiditygoblin) May 18, 2023
The crypto exchange cited a decision made by a third-party payment partner as the reason behind the sudden disruption and said it was working hard to find an alternative provider to continue offering AUD deposits and withdrawals. Meanwhile, the exchange noted that credit and debit card purchases were still operational on its peer-to-peer marketplace.
“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 Australia in a Twitter announcement.
According to a report from The Sydney Morning Herald, the third-party payment provider in question is Australian payments infrastructure firm Cuscal.
“Cuscal has, and will continue to, terminate any clients or their customers and/or merchants that do not meet our strict requirements,” said a Cuscal spokesperson to the SMH.
The decision followed the one made by Sydney-based bank Westpac, which banned customers from transacting with Binance on the same day. Westpac’s rationale behind the move is part of a series of scam protection measures the firm is rolling out, the Australian Financial Review reported.
“Digital exchanges have a legitimate role to play in the financial ecosystem. But since the rise of digital currency, we’ve noticed that scammers are increasingly using overseas exchanges,” said Westpac’s group executive of customer services and technology Scott Collary.
Last month, the Australian securities regulator canceled Binance Australia’s derivatives license after a request from the company itself. At the time, Ben Rose, the regional manager for Binance’s operations in Australia and New Zealand told the AFR that Binance had chosen to wind down its derivatives business in the region in order to “pursue a more focused approach in Australia.”