Binance users in Australia now have a narrow set of options to buy cryptocurrency amid the ongoing global debanking of cryptocurrency businesses. From 5:00 pm local time on June 1, Fiat in and out of bank transfers have stopped in Australia. The suspension includes trading in Australian dollar (AUD) pairs.
The closure of deposits and withdrawals is linked to previous events that affected Binance in Australia. In February, the local derivatives arm of Binance abruptly notified its users that certain positions and accounts would be closed to those who did not meet the requirements to be considered wholesale investors.
Fellow Binances,
We regret to inform you that AUD deposits and withdrawals by bank transfer are no longer available to Binance users in Australia. Binance has ceased all AUD trading pairs as of June 1. In order to facilitate withdrawals and trading activities after June 1, you…
— Binance Australia (@Binance_AUS) June 1, 2023
Binance Partners,
We regret to inform you that AUD deposits and withdrawals via bank transfer are no longer available to Binance users in Australia. Binance has ceased all AUD trading pairs effective June 1. In order to facilitate withdrawals and trading activities after June 1st,…
Under the law, a wholesale investor is an experienced investor with the capital to invest in high-quality assets, which often comes with higher risks. This type of investor may also be referred to as an institutional or accredited investor. To be classified as a wholesale investor in Australia, one must have net assets of at least USD 2.5 million or annual gross income of at least USD 250,000.
After Binance closed the ineligible accounts, local regulators launched a “targeted review” of the exchange’s local derivatives operations. On April 6, the Australian securities regulator terminated Binance Australia’s derivatives license.
A few weeks later, in May, Binance Australia announced that it had suspended AUD services after its local payment service provider Zepto was ordered to do so, ceasing all bank transfer deposits and withdrawals.
At the time, a Zepto spokesperson told Cointelegraph that his partner Cuscal instructed the company to “exclude Binance.” In a separate statement, Cuscal said he was only “protecting Australians from financial crime and scams.”
Since then, Binance Australia has been looking for a payment provider. In the United States, Binance.US faced a similar challenge, as former partners Silvergate and Signature Bank were shut down amid the banking crisis earlier this year.
“We are working hard to find an alternative provider to continue offering AUD deposits and withdrawals to our users,” a Binance spokesperson told Cointelegraph in a statement, adding that users in the country can still buy and sell cryptocurrencies using credit cards. or debit and peer-to-peer commerce continues to work as usual. In addition, the remaining AUD balances on the accounts have been converted to Tether (USDT).
The ongoing cross-border debanking of crypto companies has prompted Binance CEO Changpeng “CZ” Zhao to consider buying a bank, as revealed during an interview.
Although some have warned that risks remain, Australian-based cryptocurrency exchanges have lined up to assuage contagion fears following recent events. “This reflects the regulatory environment in which we operate, or in this case the lack of a regulatory environment,” said Caroline Bowler, CEO of BTC Markets.
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