Binance Australia halts AUD bank transfers

• Binance Australia has halted all Australian Dollar deposits.
• Users can still buy and sell cryptocurrencies using credit or debit cards.
• Binance Australia is working towards finding an alternative payments provider.

Binance Australia has with immediate effect halted all Australian Dollar deposits for its users, according to a statement the company tweeted on Thursday.

The crypto exchange announced it would not facilitate AUD bank transfers via PayID, citing the decision of a third-party payment provider as the reason for the action.

“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 Transfer withdrawals will also be impacted and we will advise users on timeline when this is confirmed,” the crypto exchange’s notice to users read.

A follow-up tweet from the exchange said that users will continue to access AUD withdrawals, with any changes set to be communicated in due time.

We have confirmed with our local payment partner that our users can continue to withdraw AUD and we will update with any further changes on timing as we know more. Users are still able to buy and sell via debit and credit card. https://t.co/ReS6V7FbZu

— Binance Australia (@Binance_AUS) May 18, 2023

Users can still buy and sell via debit/credit card

While the AUD bank transfers are suspended for now, Binance says its users can still buy and sell cryptocurrencies using credit or debit card. The platform’s P2P marketplace also continues to operate normally, the notice added.

In the initial statement, Binance Australia said it was working towards finding an alternative payments provider. Binance also assures users that funds are SAFU.

Binance Australia’s banking problems come at a time the broader crypto industry is seeing a growing impact from challenges related to fiat on-ramps. 

The recent collapse of crypto friendly bank Silvergate Bank and the exit of the Cosmopolitan Commercial Bank from the space is expected to exacerbate the situation even more amid strict crypto banking regulation.