Due to reduced payment options, Binance loses its banking partner, as it has recently experienced a restriction on access to Australian dollar transfers through its PayID payment gateway due to reduced payment options by banks. As a result, Binance loses its banking partner. Australian users cannot transfer fiat money to Binance or withdraw funds from their bank accounts using PayID.
Even so, it is significant to note that customers still have the ability to buy and sell cryptocurrencies using credit and debit cards. Nor do they withdraw Australian dollars on short notice.
Cryptocurrency traders operating on Binance are facing challenging decisions amid increasingly stringent global scrutiny of companies in the sector. Recently, the Australian Securities and Investments Commission (ASIC) revoked Binance Australia’s derivatives license. This means that the exchange can no longer offer financial derivatives products to wholesale traders.
This regulatory body conducted a thorough investigation into how Binance distinguished between retail and wholesale customers. Meanwhile, in the United States, the Commodity Futures Trading Commission (CFTC) accused Binance of helping its U.S. customers illegally access its derivatives trading platform.
Regulatory Uncertainty and Limitations for Binance Traders
These developments are creating a climate of uncertainty for traders using Binance. They are affected by regulatory consequences and restrictions imposed by supervisory agencies.
The Commodity Futures Trading Commission (CFTC) requires all derivatives exchanges to register under the Commodity Exchange Act. This agency is responsible for regulating Bitcoin and Ethereum futures contracts in the United States, ensuring a safe and transparent environment for investors.
On a broader stage, Binance has experienced a significant decline in its global market share, losing 18% to Asian exchanges since it stopped offering fee-free spot trading promotions in March. According to data from CCData, its global share of spot trading volume fell to 46.3% in April.
These trends can be attributed in part to global regulatory efforts to combat money laundering and ensure the integrity of the financial sector. Companies, including Binance, are facing headwinds. As regulators step up their measures and establish stricter requirements regarding transparency and security in cryptocurrency transactions.
Westpac’s Protection Measures and the Emergence of Revolut as an Alternative
Westpac Banking Corp, one of Australia’s leading banks, has begun implementing protection measures for its customers on cryptocurrency payments. The bank warns about the growing risk of hacker scams through offshore exchanges.
The bank highlights the difficulty customers face when they realize they have been scammed. Since their money has crossed borders, which complicates its recovery. Although there was no mention of whether Binance has been specifically banned, other companies have managed to maintain their banking access.
On the other hand, Revolut, a London-based company, has launched new accounts focused on payments for Australian traders. In addition to allowing Australian customers to buy and sell cryptocurrencies, Revolut is seeking to obtain a banking license to strengthen confidence in its brand.
This license would require, among other requirements, the implementation of a robust risk management system for both local and international transactions. Obtaining this banking license could give greater credibility to the crypto services offered by Revolut.
By Marina Meza
