Binance Faces Setback in Australia

Binance Faces Setback in Australia

Binance Australia banking services face disruptions following Cuscal severing ties and Westpac banning transactions with the platform.

The largest global cryptocurrency exchange, Binance, faces a significant setback in Australia. On Thursday, the platform’s Australian segment announced a banking disruption affecting their local customers’ ability to deposit or withdraw funds. The disruption results from Cuscal, a payment service provider, severing its ties with Binance. Following this development, users are unable to transfer Australian dollars to their Binance accounts immediately.

Binance Australia expressed its commitment to finding an alternate service provider to restore Australian Dollar deposits and withdrawals for its users. Cuscal, however, remains silent on this recent development as it has yet to respond to requests for comment.

Westpac Joins the Fray, Prohibits Transactions with Binance

Westpac Banking Corp, Australia’s second-largest retail bank, has also imposed restrictions on transactions with Binance, according to a report by the Australian Financial Review. Westpac’s comment on this recent development remains awaited.

Earlier, the bank announced its decision to block some cryptocurrency payments to mitigate losses from scams. However, it didn’t reveal the specific exchanges impacted or provided additional information.

A Repeated Setback for Binance’s Australian Operation

The latest disruption marks the second major setback for Binance’s operations in Australia in the past two months. In April, Binance had to forfeit a financial services license following a regulatory investigation. As a result, the cryptocurrency giant now grapples with multiple regulatory probes and lawsuits globally.

Back in March, the U.S. Commodities Futures Trading Commission (CFTC) initiated a lawsuit against Binance and its founder, Changpeng Zhao. The regulator accused them of running an “illegal” exchange.

While banking services face disruptions, Binance assures its Australian customers that transactions via credit or debit cards remain unaffected. Users can continue transacting using these payment methods despite the recent hurdles.


About Dren Hima

Being exposed to the crypto industry for the last few years has given me valuable experience with market analyses (technical and fundamental) as well as blockchain technology in general. As the content editor and a market analyst of Walletor, I strive to share the latest developments of the crypto industry, while also providing a unique educational experience for all Crypto & FinTech enthusiasts.