Binance, the cryptocurrency exchange, has temporarily suspended PayID deposits for Australian dollar account holders in its Australian branch, citing the termination of services by third-party provider Cuscal. As a result, affected customers will be unable to deposit or withdraw funds using PayID. Binance representatives have assured users that they are actively seeking an alternative provider to restore AUD deposit and withdrawal services. However, customers can still engage in transactions using credit or debit cards.
Further complications arose for Binance when Westpac Banking Corp, one of Australia’s leading banks, prohibited its customers from transacting with the exchange. Westpac introduced new safeguards to protect customers from investment scams, which have been responsible for a significant portion of scam losses. While acknowledging the legitimate role of digital exchanges, Westpac cited concerns over fraudulent activity and the increasing use of overseas exchanges by scammers.
Binance’s challenges in Australia initially surfaced in April 2023 when the exchange voluntarily surrendered its financial services license following a regulatory investigation. Specifically, Binance closed its Australian derivatives business following a targeted review by the Australian Securities and Investment Commission (ASIC).
As Binance seeks alternative solutions to address the PayID deposit suspension and navigate regulatory scrutiny, the company faces ongoing obstacles in its operations within the Australian cryptocurrency market.
