Binance Australia says banking disrupted as payment provider cuts service
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Loading... - Alessia Carta
- 18 May 2023
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The Australian division of Binance, the largest cryptocurrency exchange globally, announced on Thursday that certain customers would no longer be able to deposit or withdraw funds due to a disruption in services from a third-party provider. Binance stated on social media that immediate effects would prevent users from making Australian dollar deposits via bank transfers, and withdrawals would also be temporarily halted. The company reassured its users that they are actively seeking an alternative provider to restore AUD deposit and withdrawal services. The payments provider Cuscal, responsible for the service interruption, has not yet commented on the matter.
In a separate report, the Australian Financial Review revealed that Westpac Banking Corp, the country's second-largest retail bank, has barred its customers from transacting with Binance. Reuters attempted to contact Westpac for comments, but they were not available at that time. In a previous statement, Westpac clarified that it blocked some cryptocurrency payments to minimize losses caused by scams but did not provide specific details about the exchanges involved.
This setback represents the second blow to Binance's operations in Australia within a short span, following the surrender of their financial services license in April amidst an ongoing regulatory investigation. Binance is currently facing legal and regulatory challenges in various jurisdictions worldwide. In March, the U.S. Commodities Futures Trading Commission (CFTC) filed a lawsuit against Binance and its founder, Changpeng Zhao, alleging the operation of an "illegal" exchange.
Despite the disruptions, Binance assured its customers that they can still conduct transactions using credit or debit cards.
