Cryptocurrency exchange Binance Australia has informed users it has suspended Australian dollar services after its local payment services provider Zepto seemingly stopped support for the exchange.
Binance Australia tweeted on May 18 that deposits in Australian dollars via PayID had been suspended, and bank transfer withdrawals would also be affected. The reason given was a decision made by their third-party payment service provider.
Binance stated that it is currently searching for an alternative provider in order to continue facilitating Australian dollar deposits and withdrawals for its users. However, the option to buy and sell cryptocurrencies using credit or debit cards remains available.
Binance Australia’s spokesperson has confirmed that users in Australia can no longer make AUD deposits through bank transfers. This immediate suspension of deposits was emphasized in a statement. However, the spokesperson mentioned that withdrawals will continue to be permitted, although the duration of this availability remains uncertain.
Despite the announcement, it appears that Australian dollar deposits and withdrawals can still be conducted for the time being. This suspension comes one month after the Australian securities regulator revoked Binance Australia Derivatives’ financial services license following a review of Binance’s local operations. The service interruption has the potential to impact a significant number of Australian cryptocurrency users and investors.
Binance Australia Banned By Big Four Bank Westpac
Australian big four bank Westpac has banned its customers from transacting with Binance, as part of a suite of scam protection measures. The development comes amidst mounting pressure on the crypto giant’s operations in the country.
In a statement, Westpac revealed that it was blocking a number of cryptocurrency exchanges as part of a trial. Its data uncovered investment frauds accounted for about half of all such losses, and a third of all scam payments were transferred directly to cryptocurrency exchanges.
Binance Australia being kicked off by a major Australian payments service is yet another blow for the crypto exchange, which has already been facing severe regulatory scrutiny in the United States.