Binance Australia received 24 hours’ notice prior to debanking

abdelaziz Fathi

During his speech at the Australian Blockchain Week, Ben Rose, Binance’s regional manager, revealed that the Australia’s team received an abrupt notification in the middle of the night, stating that the exchange would be “cut off” from Australia’s banking system.

Binance

This unexpected action affected approximately 1 million customers located in Australia, according to Rose. He emphasized that there was no prior warning, consultation, or avenue for redress provided before this decision was taken.

The sudden severance from the banking system has undoubtedly posed challenges for Binance Australia in conducting its operations and serving its customer base, he added.

“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. The reasons given were not entirely clear and didn’t look that great in the media,” said Rose.

In his on-stage interview, Binance’s regional manager assured the audience that the loss of their banking partner had not had a significant impact on their business operations. Rose’s remarks imply that that Australian users quickly adapted to the situation by utilizing alternative methods, such as bank cards, for making purchases and deposits on the platform.

Earlier in May, the Australian arm of Binance told its customers that it will be unable to deposit or withdraw Australian dollars (AUD) using bank transfers. Asa result, the exchange suspended all trading pairs involving the Aussie. In order to facilitate withdrawal and trading operations, users can convert their AUD balance into stablecoin USDT.

Meanwhile, Binance Australia said that it was working hard to find an alternative provider to continue offering AUD deposits and withdrawals. The company also noted that credit and debit card purchases were still operational in its peer-to-peer marketplace.

Australia’s largest bank, the Commonwealth Bank of Australia (CBA), also introduced new anti-scam measures that include blocking certain payments to specific cryptocurrency exchanges.

As part of these measures, the bank now holds specific payments to crypto exchanges for a period of 24 hours. Furthermore, the CBA plans to apply a monthly transfer limit of A$10,000 (US$6,666) to crypto exchanges. However, the spokesperson for the lender didn’t provide clarification on whether these measures will be applicable to all crypto exchanges or only a limited number of them.

The move follows Westpac’s decision last month to ban customers from transferring funds to Binance, citing its efforts to reduce losses from scams. The Australian big four bank said the move comes after its internal data revealed that investment scams constituted approximately half of all scam losses, with one-third of scam payments being directly transferred to cryptocurrency exchanges.

Read this next

Industry News

Limitless Opportunities Await at iFX EXPO International 2024!

The countdown is on until iFX EXPO International 2024 officially gets underway. Explore the wealth of networking opportunities and business potential on offer in Limassol, Cyprus.

Market News

Elon Musk Drives NVDA Price to a New High

On Tuesday, Nvidia’s stock price hit an all-time high, exceeding $1,130, marking a nearly 7% rise from Monday’s closing price.

Retail FX

Cerus Markets launches MT5 with exclusive Crypto vs TradFi offering

“The introduction of MT5 is a significant milestone for Cerus Markets and our valued clients. We are constantly seeking ways to enrich our platform and empower our traders with more advanced tools and opportunities. MT5 aligns perfectly with our mission to bridge the gap between cryptocurrency and traditional financial markets.”

Fintech

Ouinex taps Netdania to build institutional-grade crypto trading platform

Ouinex intends to always bring the best of TradFi electronic trading infrastructure to Web3 including innovative universal cross-margining capabilities so that users can trade TradeFi instruments by using their crypto holdings as margin.

Retail FX

BDSwiss Elevates Traders’ Experience with Advanced Trading Tools

In the fast-paced world of financial markets, having access to advanced trading tools and educational resources is crucial for traders aiming to stay ahead of the curve.

Market News

Gold & Silver rally, made in China

Gold prices correlate with the US bond market, and the US Dollar influences the Gold/Silver ratio. Chinese market premiums for Gold and Silver suggest continued uptrends. Inflation-adjusted peaks indicate current prices are not overly expensive, implying potential for further gains.

Market News

Japan’s Monetary Policy and FX Intervention: Key Takeaways from the G20 Meeting

At the G20, BoJ President Kanda and Finance Minister Suzuki emphasized stable exchange rates and cautious FX intervention, signaling imminent action. Softer US inflation data and potential BoJ rate hikes are impacting USD/JPY

blockdag

Top 3 Cryptos of 2024: BlockDAG’s $1 Prediction, Immutable’s Remarkable Price Increase, and Solana’s Promising Future

Explore pivotal changes in the cryptocurrency market through our analysis of Solana, Immutable, and BlockDAG. Explore how BlockDAG raised $34.7M in its presale with advanced technologies.

Fintech

UK bank Kroo bans crypto transactions, warns account closure

London-based digital bank Kroo has imposed a ban on cryptocurrency transactions, another blow for crypto traders ‎who recently saw a sizable number of banks deciding not to ‎finance the wobbly asset class.‎

<