Binance users in Australia now have a narrow selection of options for purchasing cryptocurrencies amid the ongoing global liquidations of the crypto business. Since 5:00 pm local time on June 1, Australia has stopped on the slopes and outer slopes by bank transfers. Commentary includes trading of Australian Dollar (AU$) pairs.
The suspension of deposits and withdrawals is related to previous developments affecting Binance in Australia. In February, Binance’s local derivatives arm suddenly notified its users that certain positions and accounts would be closed for those who did not meet the requirements to be considered a wholesale investor.
Binancians Fellowship,
We regret to inform you that deposits and withdrawals in Australian dollars via bank transfer are no longer available for Binance users in Australia. Binance has suspended all AUD trading pairs from June 1st. And to facilitate withdrawals and trading activities after June 1st, you…
– Binance Australia (Binance_AUS) June 1, 2023
By law, a wholesale investor is a seasoned investor who has the capital to invest in more speculative assets, which typically carries higher risks. This type of investor may also be called an institutional or accredited investor. To be classified as a wholesale investor in Australia, one must have net assets of at least $2.5 million or annual gross income of at least $250,000.
After Binance terminated non-compliant accounts, local regulators launched a “targeted review” of the exchange’s domestic derivatives operations. On April 6, the Australian securities regulator revoked Binance Australia’s derivatives license.
A few weeks later, in May, Binance Australia announced that it had suspended AUD services after a local payment service provider, Zepto, was instructed to do so, halting all bank transfer deposits and withdrawals.
At the time, a Zepto spokesperson told Cointelegraph that its partner, Cuscal, had instructed the company to “outside Binance.” In a separate statement, Cuscal said it “only protects Australians from financial crime and fraud”.
Since then, Binance Australia has been looking for a payment provider. In the US, Binance.US has faced a similar challenge, with former partners Silvergate and Signature Bank shutting 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 or debit cards and peer-to-peer trading continues in the future. Business as usual, additionally, the remaining Australian dollar balances in the accounts have been converted to Tether (USDT).
He revealed during an interview that cross-border checking accounts of crypto companies prompted Binance CEO Changpeng “CZ” Zhao to consider buying a bank.
Although some warned that risks remain, Australian cryptocurrency exchanges lined up to mitigate contagion fears after the recent events. “This reflects the regulatory environment in which we operate or in this case, the absence of a regulatory environment,” said BTC Markets CEO Caroline Boller.
The Journal: Crypto Regulation – Does SEC Chairman Gary Gensler Have the Final Word?