Australia is one of the most favorable markets for cryptocurrencies. Nevertheless, even here serious troubles occur. Such is being experienced by the largest known exchange, which is restricting payment methods.
Binance restrictions in Australia
Binance users in Australia are currently struggling with a limited range of cryptocurrency purchasing options. As of 5 p.m. local time on June 1, fiat on-ramps and off-ramps via bank transfers are no longer available. This suspension applies to trading in pairs to the Australian dollar (AUD).
The suspension of deposits and withdrawals is related to previous events that affected Binance’s operations in Australia. In February of this year, Binance’s local derivatives arm abruptly notified users to close certain positions and accounts to those who did not meet the requirements to be considered wholesale investors.
By law, a wholesale trader is an experienced investor who has the capital to invest in more speculative assets, usually involving greater risk. This type of investor is also called an institutional or accredited investor. To be considered a wholesale investor in Australia, it is necessary to have net assets of at least $2.5 million or a gross annual income of at least $250,000.
Despite actions taken, Binance remains on target
Following Binance’s recent actions that led to the liquidation of non-compliant accounts, local regulators have undertaken a “targeted review” of the exchange’s derivatives activities. On April 6, the Australian securities regulator revoked the license of Binance Australia Derivatives.
A few weeks later, in May, Binance Australia announced that it had suspended its Australian dollar (AUD) services, as local payment service provider Zepto was instructed to cease all deposits and withdrawals via wire transfers.
A Zepto spokesperson at the time explained that their partner, Cuscal, had ordered the company to “withdraw from Binance.” In a separate statement, Cuscal announced that their actions are aimed at “protecting Australians from financial crime and fraud.”
The search for an alternative continues
Binance Australia, faced with this situation, is looking for a new payment service provider. Similar challenges have also arisen for Binance.US in the United States, where their existing partners, Silvergate and Signature Bank, were shut down as a result of the banking crisis earlier this year.
“We are working assiduously to find an alternative provider to continue to provide our users with the ability to make deposits and withdrawals in AUD,” announced a Binance spokesperson in an official announcement. In addition, it was reported that users in Australia are still able to buy and sell cryptocurrencies using credit or debit cards, and peer-to-peer trading continues to operate smoothly. In addition, AUD funds held in accounts have been converted to Tether (USDT).