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Binance halts Australian Dollar deposits following decision by third party provider

Users can still withdraw AUD while the exchange looks for a new local provider.

Binance Australia has announced that it will no longer support PayID AUD deposits and bank transfers due to issues with its third-party payment provider. The exchange is now working hard to find an alternative provider to continue offering AUD deposits and withdrawals, it announced this morning.

Users in Australia can still buy and sell crypto using credit or debit cards, and the Binance P2P marketplace remains unaffected. 

Users can also continue to withdraw AUD, and funds are protected through SAFU (Secure Asset Fund for Users) – an insurance fund that protects user’s funds in the event of “extreme situations”.

The announcement is the latest in a series of difficulties faced by exchanges in relation to fiat on-ramps. 

In March, Binance announced that it will suspending deposits and withdrawals of GBP in May unless it can find a new local banking partner. Skrill Ltd, Binance’s UK Faster Payments Service transactions, ceased its operational relationship with the exchange amidst increasing regulatory pressure. 

At the time of writing, the exchange is yet to find a new UK banking partner.

Binance didn’t give any details as to the decision of its third party provider, but the Australian Securities and Investments Commission (ASIC) is currently conducting a review of Binance Australia’s derivatives business. 

The review follows an incident where Binance incorrectly categorized 500 users as “wholesale investors,” resulting in the closure of their derivative positions. Such closure is prohibited for retail traders under local regulations. ASIC is examining this matter to ensure compliance with regulatory requirements.

The past six months have been difficult for crypto providers. Four crypto-friendly banks including Silvergate, Signature and Silicon Valley Bank went under within a week, squeezing liquidity, and major market makers including Jane Street and Jump Trading are ‘pulling back’ from the crypto industry.

While market-maker pull backs mostly impact the US (which is particularly staunch on its refusal to regulate), it’s still likely to lead to wider volatility in the market. 

Read more: Volatility in-bound? Jane Street and Jump Trading pull back on crypto trading amidst regulatory uncertainty

Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.

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