Binance Australia Banned From Payment Services With Allegations Of Fraud

Key Points:

• Due to a decision made by its third-party supplier, Australian dollar deposits and withdrawals have been disrupted.
• Westpac was confirmed as an unnamed subject in the Binance announcement.
• The action comes barely one month after the Australian authority suspended Binance Australia’s derivatives license.

Binance Australia has told customers that it has ceased Australian dollar services since its local payment services supplier seems to have stopped supporting the exchange.

Binance Australia said on May 18 that AUD PayID deposits and bank transfer withdrawals might be disrupted owing to a decision made by their third-party payment service provider.

Binance Australia clients were informed that bank transfer withdrawals would be impacted as well and that the exchange was looking for an alternate source.

“Notably, you can still buy and sell crypto using credit or debit card 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 exchange added.

According to the Australian Financial Review, Westpac, an Australian multinational banking and financial services business, has prohibited clients from interacting with Binance Australia, the contentious global cryptocurrency exchange, as part of a package of steps aimed at slowing the rise in scam losses.

Westpac stated it was implementing a slew of anti-scam procedures. Scott Collary, Westpac’s group executive of customer services and technology, stated:

“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.”

For the time being, AUD withdrawals seem to be possible. The suspension comes a month after the Australian Securities and Investments Commission terminated Binance Australia Derivatives’ financial services license after an investigation into Binance‘s local business. The termination conditions state that the cancellation has no impact on Binance‘s need to be a member of the Australian Financial Complaints Authority until April 8, 2024.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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