Binance Australia's regional manager claims the firm's operations were not affected by the sudden debanking.
Binance Australia was suddenly severed from the country's banking system, an unexpected move that affected nearly a million customers.
Ben Rose, Binance Australia’s regional manager, reports the crypto exchange received notice a mere 12 hours before debanking took action.
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Late on May 18th, the online platform for trading cryptocurrencies got a surprising notification from its payments provider, Zepto. Binance Australia's access to dollar services was halted because the banking and payments provider partner of Zepto, Cuscal, commanded it to cease support for Binance.
Rose disclosed the startling news to participants at the Australian Blockchain Week on June 26th, noting the influence on the vast customer base.
We received 24 hours' notice of debanking at 11:30 pm in the evening, that was later turned into 12 hours, and so we had our banking cut off.
Rose further stated that the reasons behind the sudden decision were vague, contributing to negative media coverage. The initial lack of clarity was a source of concern for Binance customers until it became apparent that the broader Australian crypto sector was also affected by these banking changes.
Despite the debanking shock, Rose claimed that the business operations were not substantially affected as users had turned to "other methods," possibly referring to the purchases and deposits to bank cards that Binance still supports.
Rose emphasized the importance of collaborating with regulators and the banking sector, advocating for expedited "sensible licensing" for the industry.
We would call for Australia to move relatively quickly because jurisdictions all around the world are now moving forward.
Notably, the same day, Westpac, one of the "Big Four" banks, revealed plans to block payments to crypto exchanges. Subsequently, Commonwealth Bank, another leading Australian bank, began blocking crypto-related payments.
It is worth noting that crypto exchanges like BTC Markets, Kraken Australia, CoinJar, Independent Reserve, and several other crypto-related fintech firms rely heavily on Cuscal-backed payment channels.
Binance Australia faced an abrupt disconnection from the country's banking system, a decision that impacted its vast customer base and potentially the whole cryptocurrency industry in the country. This sudden change has reinforced the necessity for a clear and concise regulatory framework for the cryptocurrency industry in Australia.
