Is it the impact of virtual currency regulations?
Binance Australia, the Australian division of major cryptocurrency exchange Binance, announced on the 18th that it is no longer possible to make deposits using Binance PayID.
Reasons are solely at the discretion of the third party service provider. According to overseas media, it seems that if PayID cannot be used, it will not be possible to make a deposit via bank transfer. Withdrawals via bank wire will also be affected, he said, adding that they will report on these withdrawals as soon as they know when they will be suspended.
After that, the company confirmed with the local payment company and announced that withdrawals could continue. If there are any changes to the timing of withdrawals, we will communicate them again.
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
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Information has been updated for withdrawals, but there is no new information for deposits at this time. Meanwhile, at the time of the initial announcement, it said it was “looking for an alternative service provider so that we can continue deposits and withdrawals.”
Binance Australia explained that it is possible to buy and sell cryptocurrencies using credit and debit cards. It also said that Binance’s peer-to-peer (P2P) electronic marketplace would not be affected. And it emphasizes that user assets are safe.
According to Bloomberg, which spoke to a Binance Australia representative, the third-party service provider that made the decision to affect deposits and withdrawals was Cuscal. Cuscal was reportedly a partner bank of Binance Australia.
The basis for Cuscal’s decision is unclear, but Bloomberg reports that Australia is stepping up efforts to protect investors from financial crime and fraud.
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Other case studies
Last month, the Securities and Investments Commission (ASIC) announced that it had revoked the license of Binance Australia Derivatives, the derivatives arm of Binance. This license was made following a revocation request by Binance.
After that, Binance said it will continue to offer spot trading services. After discussions with the Securities and Investments Commission, it said it had decided to end its derivatives services and focus more on its business in Australia.
connectionAustralian regulators revoke derivatives sector license at Binance’s request
Binance also announced this month that it will be exiting the Canadian market. As a background, he cited the tightening of regulations in the country.
connection: Binance withdraws from Canadian market due to tighter regulations
What are derivatives
Financial products derived from underlying assets such as virtual currencies and stocks, and the English notation is “derivative” which means “derivative”. Representative derivatives include futures trading, option trading, and swap trading.