Cryptocurrency exchange Binance Australia has temporarily suspended its Australian dollar (AUD) services. The suspension comes as a result of its local payment services provider, Zepto, ceasing support for the exchange.
This unexpected development has left Binance Australia scrambling to find an alternative provider. They need to ensure the continuity of Australian dollar deposits and withdrawals for their users.
Binance Australia took to Twitter on May 18 to inform its user base that PayID deposits in AUD were temporarily suspended. Additionally, bank transfer withdrawals would also be impacted due to a decision made by their third-party payment service provider.
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
The exchange assured users it was working to determine a timeline for resuming bank transfer withdrawals. A Binance spokesperson confirmed the suspension, emphasizing that the halt is effective immediately, although withdrawals remain open for an undetermined period.
However, the ability to purchase and sell cryptocurrencies using credit or debit cards remains unaffected for now. Zepto, the payment services provider in question, revealed that it processes payments for Binance Australia.
Zepto stated that its partner, Cuscal, instructed them to offboard the exchange. The company collaborates with the exchange to provide support during this transitional phase. Despite the announcement, Australian dollar deposits and withdrawals appear to be functional, at least for now.
Binance Australia’s Regulatory Challenges
This recent suspension comes on the heels of the Australian securities regulator revoking Binance Australia Derivatives’ financial services license. The revocation occurred after reviewing Binance’s local operations.
The regulator’s decision further complicates the situation for Binance Australia, adding regulatory scrutiny to the existing challenges the exchange faces. The temporary suspension of AUD services potentially affects many Australian cryptocurrency users and investors.
Binance Australia’s former CEO, Leigh Travers, revealed in an interview with The Sydney Morning Herald that the exchange had reached the milestone of one million users. According to research conducted in November 2022 by Finder, approximately 3.3 million Australians were estimated to own cryptocurrencies.
Binance Australia is now seeking an alternative payment services provider to resume AUD fiat services promptly. In the meantime, the exchange assures its users that their funds remain safe through the Secure Asset Fund for Users (SAFU), an insurance fund designed to protect Binance users and their funds during extreme situations.
As the situation unfolds, Binance Australia must navigate these challenges swiftly and effectively to restore full functionality for its Australian users. The search for a reliable third-party payment service provider becomes crucial to ensure seamless transactions and maintain user confidence within the exchange.
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