Binance Halts Deposits and Possibly Withdrawals for Aussie Users After Being Cut Off by Australian Payment Service Provider
Binance Australia said on May 18 that it is “unable to facilitate PayID AUD deposits for Binance users” due to a third-party payment service provider’s decision to discontinue support for the crypto exchange. Binance Australia said while it works to find an alternative, users can still “buy and sell crypto using credit or debit cards.” […]
Binance Australia said on May 18 that it is “unable to facilitate PayID AUD deposits for Binance users” due to a third-party payment service provider’s decision to discontinue support for the crypto exchange. Binance Australia said while it works to find an alternative, users can still “buy and sell crypto using credit or debit cards.” Scott Collary, an executive at the service provider, claimed that “scammers are increasingly using overseas exchanges.”
Binance Australia Seeks an Alternative Third-Party Payment Service Provider
Crypto exchange Binance Australia announced on May 18 that it had “temporarily” suspended Australian dollar services after its payment service provider Westpac abruptly discontinued support for the platform. As a consequence, the crypto exchange said it is now “unable to facilitate PayID AUD deposits for Binance users.” The exchange warned users that the action taken by the third-party payment service will also likely impact bank transfer withdrawals.
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
However, in its May 18 tweet, Binance Australia did not explain why it has been banned or offer a hint of when the temporary suspension of the service is likely to be lifted. Instead, the tweet said the crypto exchange is working to find an alternative. The tweet also advised Binance Australia users to switch to its peer-to-peer marketplace.
“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 exchange said in a tweet.
Crypto Exchanges Failing to Deal With Scammers
Meanwhile, reports from local media have said Binance Australia was among several other crypto exchanges that have been cut off by Westpac, which announced a series of so-called scam protection measures on the same day. Explaining why his firm made the drastic decision of banning crypto exchanges, Scott Collary, the group executive of customer services and technology at Westpac, reportedly said:
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.
Collary also claimed that customers of Westpac usually discover they have been scammed when the funds have already left the country. At that point, recovering the stolen funds will be “extremely difficult.”
While an unnamed spokesperson for Australian Payments Plus, which oversees the operation of Pay ID, is quoted confirming the decision, they nonetheless denied any involvement in the matter.
“It is a matter for this organisation and its third-party payment service provider,” the spokesperson said.
Westpac’s decision to ban Binance Australia is the latest in a series of setbacks to befall the crypto exchange in Australia. In early April, a report in the Sydney Morning Herald said the Australian Securities and Investments Commission (ASIC) had canceled the license of Binance Australia’s local entity known as Oztures Trading. The report added that the Australian watchdog had been conducting “a targeted review” of the crypto exchange’s financial services business in the country.
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