Binance Australia faces difficulties with services linked to AUD.
Binance Australia, the Australian arm of the largest cryptocurrency exchange in terms of daily trading volumes, has recently announced that its Australian dollar services are temporarily suspended.
According to the announcement shared on May 18th, the suspension was caused by the "decision made by <their> third-party payment service provider."
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In its Twitter thread, Binance Australia highlighted that bank transfer withdrawals are expected to be affected as well. Binance Australia clarified further by stating:
Bank Transfer withdrawals are likely to be impacted and we will update users on the timeline once we have confirmation.
The statement came in response to the crypto exchange's earlier notice that AUD deposits via bank transfers were no longer available for Binance users in Australia.
The spokesperson for Binance confirmed that the suspension was effective immediately, although the exact timeline for the withdrawal functionality remains unknown.
In light of these challenges, Binance is now seeking to find an alternative provider to resume AUD deposit and withdrawal services. The company emphasized that users can still buy and sell crypto using credit or debit cards. The crypto exchange's P2P marketplace will continue to operate normally. The company further reassured its users by stating:
Your funds are safe due to the Secure Asset Fund for Users (SAFU), an insurance fund that offers protection to Binance users and their funds in case of extreme situations.
Despite the announcement, AUD deposits and withdrawals were reportedly still functional.
This service suspension follows recent action by the Australian securities regulator, which revoked Binance Australia Derivatives' financial services license after reviewing the local operations of Binance.
The halt could potentially impact a substantial number of Australian crypto users and investors. Former Binance Australia CEO Leigh Travers claimed in a December interview with The Sydney Morning Herald that the crypto exchange had reached a user base of one million.
Research from Finder in November 2022 estimated that around 3.3 million Australians own cryptocurrency.