Binance Australia Halts Australian Dollar Bank Transfers

Exchange blames third-party payment providers, and says that credit as well as debit cards can still be used.

AccessTimeIconMay 18, 2023 at 6:25 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Binance Australia says that it will no longer be able to facilitate Australian Dollar bank transfers using PayID, the exchange said on Thursday.

In a tweet, Binance Australia blamed its third-party payment service provider and said that it's working to find an alternative.

  • Australia to Release Draft Legislation for Crypto Exchanges in 2024; Is Binance Too Big to Fail?
    26:19
    Australia to Release Draft Legislation for Crypto Exchanges in 2024; Is Binance Too Big to Fail?
  • Australia's CBDC Pilot Shows 'Path Forward' for a Tokenized Economy: Canvas CEO
    08:55
    Australia's CBDC Pilot Shows 'Path Forward' for a Tokenized Economy: Canvas CEO
  • Australia Won't Introduce a CBDC for Some Years, Central Bank Says
    02:31
    Australia Won't Introduce a CBDC for Some Years, Central Bank Says
  • Binance to Shut Down 'Connect' Service; State of Crypto in Singapore and Australia
    26:09
    Binance to Shut Down 'Connect' Service; State of Crypto in Singapore and Australia
  • Australia-based users can still buy and sell crypto using their credit or debit card, and Binance says its P2P marketplace continues to operate as usual. This comes as crypto exchanges continue to find it difficult to maintain fiat on-ramps.

    Binance-rival Crypto.com is also facing a banking crisis, with its US dollar deposit functionality at risk following Silvergate Bank's collapse, Metropolitan Commercial Bank's exit from crypto (in a recent filing, the bank said it was almost done exiting the crypto market), and the freezing of previous partner Transactive Systems' Euro accounts, threatening the exchange's liquidity.

    For many of Crypto.com’s customers, deposits via debit or credit cards — an expensive pipeline for the exchange — are the only way they can transact.

    Meanwhile, The Australian Securities and Investments Commission (ASIC) is reviewing Binance Australia's derivatives business after the crypto exchange erroneously classified 500 users as "wholesale investors," leading to the closure of their derivative positions, which local regulations prohibit for retail traders.

    Binance has pledged full compensation to the affected users. Binance Coin (BNB) is unaffected by the news and is trading flat.

    Edited by Parikshit Mishra.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.



    Read more about