Sydney-based Westpac Bank Bans Binance Trading Amid Scam Concerns And Lawsuits

Key Points:

• Westpac Bank bans customers from transacting with Binance.
• Investment scams account for half of all scam losses, with a third of scam payments going to cryptocurrency exchanges.

AFR reported that Westpac Bank banned customers from trading with Binance and introduced new security measures to curb scam losses. Binance Australia customers can no longer use PayID. Lawsuits filed against Binance.

Westpac Bank has recently banned its customers from transacting with Binance, a global cryptocurrency exchange, as part of efforts to curb scam losses. The bank has rolled out a series of scam protection measures in response to the rise in digital currency scamming. According to Scott Collary, Westpac’s group executive of customer services and technology, scammers increasingly use overseas exchanges to carry out fraudulent activities. The new security measures are aimed at better protecting customers from scams.

Investment scams account for around half of all losses, with a third of all payments transferred directly to a cryptocurrency exchange. This data was shared by Mr. Collary, who pointed out that customers often discover they have been scammed only after the money has left the country, making a recovery a challenging process.

The Westpac ban coincided with the news that Binance Australia customers can no longer use PayID to transfer Australian dollars into their Binance accounts due to restrictions placed on the exchange by a third-party vendor. The exchange is reportedly working hard to find an alternative provider to continue offering its users Australian dollar deposits and withdrawals.

It is worth noting that this is not the first time Binance has faced regulatory issues. In March, a lawsuit was filed by the US Commodity Futures Trading Commission alleging that its chief executive, Changpeng Zhao, were operating an illegal exchange and a sham compliance program. The lawsuit accuses the exchange of “willfully evading” US law by soliciting American customers for its derivatives business.

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