Westpac has stopped customers from transacting with a number of crypto exchanges,including Binance.Credit:The Age
Crypto exchanges halting withdrawals is often viewed as a grim omen by users and can be a precursor for deeper issues. A number of Binance Australia customers expressed their concerns on Twitter about the sudden decision,with one labelling the decision as “disgraceful”.
The company sought to assure users their crypto funds were safe under Binance’s Secure Asset Fund for Users (SAFU),which is an insurance fund that offers protection to Binance users and their funds in “extreme situations”.
Binance Australia’s sudden move is the latest in a line of complications for the local exchange,which wasstripped of its financial services licence early last month and is the subject of a “targeted review” by corporate watchdog ASIC. In 2021,Binance abruptly stopped selling a range of complex derivative products to Australian customers as well after concerns were raised by ASIC.
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Binance’s international business has also been accused of operating an “illegal” exchange and multiple allegedly “wilful” breaches of US trading law. Former employees have also accused the company of having a lax approach to regulatory compliance in Australia.
A spokesperson for Australian Payments Plus,which oversees the operation of PayID,confirmed it was not involved in the decision. “It is a matter for this organisation and its third-party payment service provider,” the spokesperson said.
Binance is the world’s biggest cryptocurrency exchange with revenue exceeding $US20 billion ($29.8 billion) and 30 million registered users,according to 2022 data. In Australia,it has 200,000 customers thanks to a huge marketing campaign and a large network oflocal influencers.
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