Binance Australia halts AUD deposits and withdrawals, here’s why

• Binance Australia halted AUD fiat services due to a decision made by its local payment services supplier.
• The action could impact a large number of Australian cryptocurrency users and investors.

Cryptocurrency exchange Binance told its users that it ceased Australian dollar (AUD) fiat services since its local payment services supplier appears to have stopped supporting the exchange.

Binance Australia announced on Twitter that AUD PayID deposits and bank transfer withdrawals would be impacted due to a decision made by its third-party payment service provider.

Customers can still purchase and trade cryptocurrency using credit or debit cards and the Binance P2P marketplace, according to the exchange.

Binance said:

“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 that it was looking for a replacement partner to continue enabling AUD deposits and withdrawals. However, it is still possible to buy and sell cryptocurrency using credit or debit cards.

The statement read,

“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.”

The suspension of these services could impact a large number of Australian cryptocurrency users and investors.

Binance faces regulatory heat in Australia

A month ago, The Australian Securities and Investments Commission (ASIC) cancelled the license for Oztures business Pty Ltd, which was trading as Binance Australia Derivatives.

The cancellation went into effect on 14 April. And Binance clients were required to terminate any existing derivative positions by 21 April.

ASIC has been undertaking a targeted assessment of Binance’s financial services business in Australia. The regulator focused particularly on Binance’s retail and wholesale client categorization.

ASIC Chair Joe Longo said:

“Retail clients trading in crypto derivatives are afforded important rights and consumer protections under financial services laws in Australia, including access to external dispute resolution through the Australian Financial Complaints Authority… Our targeted review of these matters is ongoing, including focus on the extent of consumer harms.”