Binance Australia has recently notified its users about the suspension of its Australian dollar services.
This action was prompted by the apparent withdrawal of support from the exchange’s local payment services provider.
In a tweet published on May 18, Binance Australia disclosed the temporary halt of Australian dollar PayID deposits. Additionally, the withdrawal of funds through bank transfers will also be affected due to what the exchange referred to as “a decision made by our third-party payment service provider.”
“We understand from our third-party payment service provider that Bank Transfer withdrawals will also be impacted and we will advise users on timeline when this is confirmed,” it said.
“AUD deposits by bank transfers are no longer available to Binance users in Australia,” a Binance spokesperson confirmed in a statement to Blockchain Daily.
Following the suspension of Australian dollar services, Binance has expressed its commitment to promptly resolve the situation by seeking an alternative payment services provider. The exchange aims to ensure the continuity of Australian dollar deposits and withdrawals for its users. It is worth noting that the option to purchase and sell cryptocurrencies using credit or debit cards remains unaffected and continues to be accessible on the platform.
“Notably, you can still buy and sell crypto using credit or debit card and our Binance P2P marketplace will also continue to operate as usual. Rest assured that your funds are safe through the Secure Asset Fund for Users (SAFU), an insurance fund that offers protection to Binance users and their funds in the event of extreme situations,” it added.
Despite the recent announcement, it appears that users are still able to carry out Australian dollar deposits and withdrawals, at least temporarily.
This suspension comes on the heels of a regulatory action taken by the Australian securities regulator a month ago. The financial services license of Binance Australia Derivatives was canceled after a thorough examination of Binance’s local operations.
The impact of this service suspension is potentially significant, affecting a considerable number of Australian cryptocurrency users and investors. Notably, Binance Australia’s former CEO, Leigh Travers, claimed in an interview with The Sydney Morning Herald in December that the exchange had reached a milestone of one million users.
According to research conducted in November 2022 by Finder, approximately 3.3 million Australians are estimated to own cryptocurrencies, highlighting the wide-reaching implications of this service disruption.