- Binance Australia has suspended PayID and bank deposits and withdrawals for Australian dollars due to a third-party payment provider.
- The third-party platform, Cuscal, said that Binance failed to comply with the platform’s compliance regulations.
- Binance Australia still operates debit or credit on its peer-to-peer market.
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Binance Australia, a subsidiary of one of the largest cryptocurrency exchanges in the industry, has announced that it will suspend deposits and withdrawals of Australian dollars through PayID and bank transactions for Australian users. The company cited a decision made by a third-party payment partner as the reason for the sudden disruption, but it did not affect credit or debit card transactions in the peer-to-peer marketplace.
In an email, Binance Australia said it is working hard to find an alternative provider to continue offering AUD deposits and withdrawals. The company also noted that credit and debit card purchases are still taking place on its peer-to-peer marketplace. Binance further announced the news on Twitter:
We regret to inform you that with immediate effect we will not be able 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 the Bank…
– Binance Australia (@Binance_AUS) May 18, 2023
The third party company, Cuscal, said Binance NOT to meet its strict compliance requirements in an effort to reduce scams and frauds, further telling the Sydney Morning Herald that “Cuscal has strict due diligence, onboarding and compliance requirements for our clients and any of their customers and/or merchants… Cuscal has, and will continue to, terminate any clients or their customers and/or merchants who do not meet our strict requirements.
Binance has not yet stated when it expects to resume offering PayID and bank deposits.
The decision to suspend PayID and bank deposits follows a series of setbacks for Binance Australia. In March, the Australian Securities and Investments Commission (ASIC) cancelled Binance Australia’s derivatives license after a request from the company itself due to the Commission starting a “targeted investigation” of Binance, ACCORDING to Reuters.
Binance CEO Changpeng “CZ” Zhao took to Twitter to further explain the cancellation:
There is some misinformation (and confusion) about #Binance Australia.@Binance_AUS requested to cancel the derivatives license yesterday. The platform has exactly 104 users as of yesterday.@Binance_AUS CONTINUE to operate the AU spot exchange. 🙏 pic.twitter.com/nEExtG4U90
— CZ 🔶 Binance (@cz_binance) April 6, 2023
Woe to Binance
This latest setback for Binance comes at a time when the exchange is facing increased scrutiny from regulators around the world.
In the United States, New York The State Department of Financial Services ordered Paxos, the company that mines BUSD and other stablecoins, to Binance USD (BUSD) mining has stopped starting on February 21, 2023. While the reason for this decision is still open, the Wall Street Journal bELIEVE that this may be because the SEC intends to sue Paxos for making unregistered securities.
CZ said on Twitter that while Binance does not support the decision, they will stop using BUSD for trades:
7/ Binance will continue to support BUSD for the foreseeable future. We envision that users will migrate to other stablecoins over time. And we will make product changes accordingly. for example, stay away from using BUSD as the main pair for trading, etc.
— CZ 🔶 Binance (@cz_binance) February 13, 2023
Meanwhile, Binance LEAVING from Canada amid Canadian regulators tightening their crypto regulations. CZ Tweet, “we there are high hopes for the rest of the Canadian blockchain industry. Unfortunately, the new guidance related to stablecoins and investor limits given to crypto exchanges has made the Canadian market unsustainable for Binance at this time.