The cryptocurrency exchange Binance Australia has informed users that it has suspended Australian dollar services after its local payment service provider Zepto stopped supporting the exchange.
On May 18, Binance Australia tweeted that PayID Australian dollar deposits were suspended and bank transfer withdrawals would also be affected “due to 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 affected and we will notify users when this is confirmed,” it said.
We regret to inform you that with immediate effect we are unable to facilitate PayID AUD deposits for Binance users due to a decision made by our third party payment service provider. We understand from our third party payment service provider that Bank…
— Binance Australia (@Binance_AUS) May 18, 2023
Fellow Binancians, we regret to inform you that effective immediately we are unable to facilitate PayID AUD deposits for Binance users due to a decision made by our third party payment service provider. We understand from our third-party payment service provider that the Bank…
“Australian dollar deposits via bank transfers are no longer available to Binance users in Australia,” a Binance spokesperson confirmed in a statement to Cointelegraph.reiterating that the cessation is effective immediately, although withdrawals will remain open for an unknown period of time.
Binance said it is now working to find an alternative provider to continue offering Australian dollar deposits and withdrawals to its users. The ability to buy and sell cryptocurrency using credit or debit cards remains available, he added.
A Zepto spokesperson told Cointelegraph that it “processes payments for Binance Australia.”
“Our partner, Cuscal, instructed us to delist Binance,” Zepto added. “We are currently working with Binance to support them through this process.”
Binance just got de-banked in Australia
which country is next? pic.twitter.com/SiLBrj9pYu
— Liquidity Goblin (@liquiditygoblin) May 18, 2023
Binance has just been ousted in Australia. What country is next?
“Notably, you can still buy and sell crypto using your 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 Safe User Asset Fund (SAFU), an insurance fund that offers protection to Binance users and their funds in case of extreme situations,” he added.
Despite the announcement, Australian dollar deposits and withdrawals are still possible for the time being. Cointelegraph’s Australian staff were able to deposit a small amount of AUD using PayID and withdraw from the exchange to an Australian bank account at the time of writing.
The suspension comes a month after the Australian securities regulator canceled Binance Australia Derivatives’ financial services license. after reviewing local Binance operations.
The service outage potentially affects a significant number of Australian cryptocurrency users and investors.
In a December interview with The Sydney Morning Herald, then-CEO of Binance Australia Leigh Travers claimed that the exchange had reached 1 million users.
It is estimated that around 3.3 million Australians own cryptocurrency, according to a November 2022 Finder study.
Update (May 18 7:25am UTC): This article has been updated to include a response from Zepto.
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