Binance Halts Deposits and Possibly Withdrawals for Aussie Users After Being Cut Off by Australian Payment Service Provider

Binance Australia stated on May 18 that it’s “unable to facilitate PayID AUD deposits for Binance users” resulting from a third-party cost service supplier’s determination to discontinue assist for the crypto trade. Binance Australia stated whereas it really works to search out another, customers can nonetheless “buy and sell crypto using credit or debit cards.” Scott Collary, an government on the service supplier, claimed that “scammers are increasingly using overseas exchanges.”

Binance Australia Seeks an Alternative Third-Party Payment Service Provider

Crypto trade Binance Australia introduced on May 18 that it had “temporarily” suspended Australian greenback providers after its cost service supplier Westpac abruptly discontinued assist for the platform. As a consequence, the crypto trade stated it’s now “unable to facilitate PayID AUD deposits for Binance users.” The trade warned customers that the motion taken by the third-party cost service can even seemingly affect financial institution switch withdrawals.

Fellow Binancians,

We remorse to tell you that with rapid impact we’re unable to facilitate PayID AUD deposits for Binance customers resulting from a call made by our third occasion cost service supplier. We perceive from our third occasion cost service supplier that Bank…

— Binance Australia (@Binance_AUS) May 18, 2023

However, in its May 18 tweet, Binance Australia didn’t clarify why it has been banned or supply a touch of when the non permanent suspension of the service is more likely to be lifted. Instead, the tweet stated the crypto trade is working to search out another. The tweet additionally suggested Binance Australia customers to change to its peer-to-peer market.

“We are working hard to find an alternative provider to continue offering AUD deposits and withdrawals to our users. Notably, you can still buy and sell crypto using credit or debit cards 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,” the crypto trade stated in a tweet.

Crypto Exchanges Failing to Deal With Scammers

Meanwhile, stories from native media have stated Binance Australia was amongst a number of different crypto exchanges which were lower off by Westpac, which introduced a sequence of so-called rip-off safety measures on the identical day. Explaining why his agency made the drastic determination of banning crypto exchanges, Scott Collary, the group government of buyer providers and expertise at Westpac, reportedly stated:

Digital exchanges have a authentic position to play within the monetary ecosystem. But because the rise of digital foreign money, we’ve seen that scammers are more and more utilizing abroad exchanges.

Collary additionally claimed that clients of Westpac often uncover they’ve been scammed when the funds have already left the nation. At that time, recovering the stolen funds might be “extremely difficult.”

While an unnamed spokesperson for Australian Payments Plus, which oversees the operation of Pay ID, is quoted confirming the choice, they nonetheless denied any involvement within the matter.

“It is a matter for this organisation and its third-party payment service provider,” the spokesperson stated.

Westpac’s determination to ban Binance Australia is the most recent in a sequence of setbacks to befall the crypto trade in Australia. In early April, a report within the Sydney Morning Herald stated the Australian Securities and Investments Commission (ASIC) had canceled the license of Binance Australia’s native entity often called Oztures Trading. The report added that the Australian watchdog had been conducting “a targeted review” of the crypto trade’s monetary providers enterprise within the nation.

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