The crypto exchange has blamed third-party payment providers, adds that credit and debit cards can still be used on the platform.
The Australian arm of the world’s largest crypto exchange by trading volume announced that it is no longer able to facilitate Australian Dollar bank transfers using the PayID service, in a Thursday announcement.
Binance Australia tweeted that it blames its third-party payment service provider for the halt, and that it is currently working to find an alternative.
Binance Australia users can no longer use PayID, an initiative that links a customer’s bank account to their ‘PayID’ to receive payments.
They can still buy and sell cryptocurrencies with their credit or debit card, with the trading platform saying that its P2P marketplace will continue to operate as usual.
The pause in service comes at a time where crypto exchanges around the world are facing difficulties with their fiat on-ramp partners. Binance Canada has recently announced that it will close its doors, citing regulatory uncertainty within the country.
Crypto.com, a rival exchange to Binance, is also in the midst of its own banking crisis. At writing, its US dollar deposit function is at risk, after the collapse of crypto-friendly Silvergate Bank, and the exit of Metropolitan Commercial Bank from crypto. Crypto.com’s liquidity is also currently being threatened as European accounts from its previous banking partner Transactive Systems are being frozen.
For Crypto.com’s customers, transactions come at a hefty cost. Deposits are made via debit or credit cards end up being expensive to operate for the exchange – and it is the only way they can transact.
At the moment, the Australian Securities and Investments Commission (ASIC) is reviewing Binance Australia’s derivatives business, post the exchange’s classification of 500 users as “wholesale investors,” which led to the closure of Binance Australia’s derivative positions. In Australia, regulators have prohibited derivative positions for retail traders.
Binance Australia has promised full compensation for all affected users of the event, and Binance Coin (BNB) is currently trading flat.