Binance Now Terminating Australia Due To Banking Partner Issues: CZ

Key Points:

  • Binance’s termination of operations in Australia is purely because of problems with its banking partners, not from the exchange’s side, according to CEO Changpeng Zhao.
  • Westpac Bank is one of the banks that warns users to use the exchange’s services.
  • In addition to Australia, the exchange also has legal troubles in the US.
After Binance‘s troubles with the country with tight crypto institutions, Changpeng “CZ” Zhao spoke out about why the exchange had to leave Australia.
Binance Now Terminating Australia Due to Banking Partner Issues: CZ

CZ said that for Binance to close its business in Australia and the Australian dollar trading pair, this is a decision made by the legal currency channel, that is, the bank partner stops cooperation with it. Without access to fiat currency, there is no way to deposit or withdraw AUD, and the pair is illiquid, he stated.

Binance Australia has told customers that its Australian currency services have been terminated after its local payment services provider was directed to discontinue support for the exchange.

The Australian arm said on May 18 that Australian dollar PayID deposits and bank transfer withdrawals might be affected owing to a decision made by its third-party payment service provider.

Binance later issued an announcement that it would delete and delist the relevant Australian dollar trading pairs on June 1. Users of Binance’s platform may still trade the impacted assets on other trading pairs, according to the company. It would, however, discontinue its Trading Bots services for the aforementioned pairs.

Previously, Westpac Bank, one of Australia’s four main banks, barred clients from trading with Binance after its own statistics revealed that investment scams accounted for about half of all scam losses, and one-third of all scam funds were transmitted straight to cryptocurrency exchanges.

This drawback is coming when Binance’s operation in Australia faces much regulatory scrutiny.

Binance Now Terminating Australia Due to Banking Partner Issues: CZ

In April, the exchange canceled its derivatives license with the Australian Securities and Investments Commission (ASIC). At the time, the financial regulator said it was investigating the platform’s compliance with local laws.

Not only is the exchange being challenged in Australia, but it is also being sued by the US authorities. The Commodities Futures Trading Commission (CFTC) of the United States sued Binance and CZ in March for breaches of commodities law. The exchange does not support the trading of derivative orders on commodities for US persons, which makes sense to the regulator.

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