Binance Australia Receives Only 12 Hours’ Notice Before Being Debanked, Executive Reveals

In an unexpected turn of events, Binance Australia’s team was informed in the middle of the night that it would be disconnected from the country’s banking system. According to the exchange’s regional manager, Ben Rose, there was no prior notice, consultation, or avenue for recourse.

On May 18, Binance Australia announced the suspension of its dollar services after its payments provider, Zepto, received instructions from Cuscal, Zepto’s partner banking and payments provider, to cease support for Binance.

Speaking at the Australian Blockchain Week on June 26, Rose revealed that approximately 1 million customers in Australia were affected by this move. He stated, “We received 24 hours’ notice of debanking at 11:30 pm in the evening, which was later reduced to 12 hours, and so we had our banking services cut off.”

Rose also noted that the reasons provided for the action were unclear and didn’t present a positive image in the media. While a Cuscal spokesperson declined to comment on matters related to Binance Australia, they did reference crypto-related “scams and fraud.”

Initially, the limited information caused concern among Binance customers. However, as Rose explained, the tone quickly changed when it became apparent that the broader local crypto industry was impacted by these banking changes.

On the same day that Cuscal severed ties with Binance, Westpac, one of Australia’s major banks, announced it would begin trials to block payments to crypto exchanges. Commonwealth Bank, another prominent Australian bank, followed suit less than a month later with similar measures to restrict crypto-related payments.

When asked about Binance Australia’s search for an alternative third-party payments provider, Rose declined to provide additional details due to ongoing discussions.

Although other providers exist, Rose admitted that Cuscal “banks the majority of this industry.”

During the on-stage interview, Rose asserted that losing access to their banking partner hadn’t significantly impacted the business. He mentioned that Binance users were resorting to alternative methods, likely referring to purchases and deposits made through bank cards, which are still supported on the platform.

Rose emphasized the importance of collaborating with regulators and the banking sector, suggesting the implementation of “sensible licensing” for the industry. He called for Australia to act promptly, highlighting that jurisdictions worldwide are already progressing in this regard.

“We have a window as a country, and we think there’s an opportunity, but there’s also a risk if we don’t move on licensing relatively quickly,” Rose cautioned.

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