Binance Australia Halts Australian Dollar Bank Transfers

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Updated: 18 May 2023

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On Thursday, Binance Australia announced it would no longer support Australian Dollar bank transfers using PayID, citing issues with its third-party payment service provider.

The exchange assured users it is actively seeking an alternative solution to facilitate these transfers. Despite this change, Australian users can still trade cryptocurrency on Binance Australia using credit or debit cards.

Additionally, the exchange emphasized that its peer-to-peer (P2P) marketplace remains unaffected and continues to operate normally. This development aligns with the ongoing challenges faced by cryptocurrency exchanges in maintaining fiat on-ramps for their platforms.

Challenges Mount for Crypto.com and Binance Australia Amid Banking and Regulatory Issues

Crypto.com, a significant competitor of Binance, is currently grappling with a banking crisis that has jeopardized its US dollar deposit functionality. Silvergate Bank’s collapse and Metropolitan Commercial Bank’s decision to exit the crypto market have posed significant challenges to Crypto.com.

Furthermore, freezing previous partner Transactive Systems’ Euro accounts has further exacerbated the situation, potentially impacting the exchange’s liquidity. For numerous Crypto.com customers, the only available method for transacting is through deposits made via debit or credit cards.

However, this approach proves costly for the exchange. With the aforementioned banking issues, the availability of this payment pipeline may be compromised, leading to further complications. Simultaneously, the Australian Securities and Investments Commission (ASIC) is thoroughly reviewing Binance Australia’s derivatives business.

This investigation comes in the wake of Binance mistakenly classifying 500 users as “wholesale investors.” As a result, these retail traders had their derivative positions closed, violating local regulations. The incident has prompted ASIC to scrutinize Binance Australia’s operations in the derivatives market closely. These recent developments indicate a challenging period for Crypto.com and Binance as they navigate significant regulatory and banking hurdles.