Binance Australia suspends fiat deposits via bank transfers due to third-party payment service provider refusing to offer services

Binance Australia announced on May 18th that due to a decision by a third-party payment service provider, Binance will no longer be able to offer PayID for AUD deposits for users, effective immediately. Withdrawal services will continue to operate as normal, and Binance is actively seeking alternative partners. Binance stated that customers can still buy and sell cryptocurrencies using credit or debit cards, and the P2P market will also continue to operate normally. Customer funds are safe and secure through the Secure Asset Fund for Users (SAFU).

Partners Emphasize the Importance of Compliance

According to a report by Cointelegraph, Zepto, the company handling the Australian dollar deposits and withdrawals for Binance, had their partner Cuscal instruct them to leave Binance. In a recent statement, Cuscal stated:

Recent media attention on the impact of scams and fraud in Australia, particularly focusing on account fraud, identity theft, and crypto activities, Cuscal reaffirms its commitment and important role in identifying and implementing detection services for its Australian payment system customers.

They also added that they have terminated and will continue to terminate any customers or businesses that do not comply with their KYC and regulatory requirements.

Binance had its financial services license revoked in Australia in April, with CZ clarifying at the time that spot trading was not affected. However, it appears that even the Australian fiat onramp for Binance, managed by Zepto, has been affected. Currently, Binance is coordinating with Zepto to allow customer withdrawals and seeking alternative partners, but in the current regulatory climate, it seems to be a challenging situation.