Binance Australia Suspends AUD Fiat Deposits
- The crypto exchange blamed the issue on a decision made by its third party payments provider in Australia, noting that it is now looking for a new partner in the country.
- Binance Australia assured users that AUD withdrawals are still available, and that they can continue to buy and sell crypto using debit/credit cards and its P2P marketplace.
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The Australian arm of cryptocurrency exchange Binance has suspended Australian dollar (AUD) deposits due to issues with its local payment services provider, the company said via Twitter on 18 May.
According to the anouncement, Binance Australia is no longer able to facilitate AUD deposits through PayID — an instant bank transfer system supported in the country — due to a decision made by its third party payment service provider. The company assured its users that it is working hard to find an alternative provider in order to continue offering AUD deposits.
While the exchange initially said that AUD withdrawals will also be impacted, it later provided an update saying that users still have access to AUD withdrawals and that it will provide further updates if there are any changes. It also informed users that they can continue to buy and sell crypto using credit and debit cards, and through its peer-to-peer (P2P) marketplace. The exchange added:
“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 news came more than a month after the Australian Securities and Investment Commission (ASIC) cancelled Binance’s derivatives license in the country after conducting a targeted review of the exchange’s local operations. Today’s move could potentially impact a significant portion of Australia’s crypto users, considering Binance Australia CEO Leigh Travers’ claim that the exchange had around one million users in the country.
- The company said it will be suspending its crypto-backed debit card service in the Middle East on 25 August, and in Latin America by 21 September.
- Although no reason was given for the decision, the company noted that “less than 1% of users” in those regions will be affected by the change.
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- A spokesperson said the change was due to the “changing market and user needs”, and that Binance will now be refocusing its resources on its main products and long-term goals.
- Launched in March 2022, Binance Connect helped crypto businesses connect with the traditional finance system, and supported 50 cryptocurrencies and networks such as Visa and Mastercard.
- The Australian Securities and Investments Commission (ASIC) has filed a lawsuit against trading platform eToro over its contract for difference (CFD) product.
- The regulator claimed the product’s target market was too broad, and that eToro used insufficient screening tests when offering the leveraged derivative contracts to retail users.