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Binance users in Australia now have a narrowed pool of options for buying cryptocurrency amid the ongoing global debanking of the cryptocurrency business. From 17:00 local time on June 1, entries and exits from fiat money through bank transfers have been stopped in Australia. The suspension applies to trading in pairs with the Australian dollar (AU$).
The closing of deposits and withdrawals is due to previous events affecting Binance in Australia. In February, Binance’s local derivatives division unexpectedly notified its users that certain positions and accounts would be closed to those who did not meet the requirements for wholesale investors.
We regret to inform you that AUD deposits and withdrawals by bank transfer are no longer available to Binance users in Australia. Binance has ceased all AUD trading pairs as of June 1. In order to facilitate withdrawals and trading activities after June 1, you…
— Binance Australia (@BinanceAUS) June 1, 2023
According to the law, a wholesale investor is an experienced investor who has sufficient capital to invest in more speculative assets, which usually involves higher risks. This type of investor may also be referred to as an institutional or accredited investor. To be classified as a wholesale investor in Australia, you must have net assets of at least $2.5 million or an annual gross income of at least $250,000.
Following the closure of non-compliant accounts by Binance, local regulators launched a “targeted review” of the exchange’s local derivatives operations. On April 6, the Australian Securities Regulator canceled the license of Binance Australia Derivatives.
A few weeks later in May, Binance Australia announced that it had suspended its AUD service after local payment service provider Zepto was instructed to do so, halting all wire transfer deposits and withdrawals.
At the time, a Zepto spokesperson told Cointelegraph that his partner, Cuscal, had instructed the company to “take Binance overboard.”
Since then, Binance Australia has been looking for a payment service provider. In the United States, Binance. US faced a similar challenge as former partners Silvergate and Signature Bank were closed due to a banking crisis earlier this year.
“We are working hard to find an alternative provider that will continue to offer our users AUD deposits and withdrawals,” a Binance spokesperson said in a statement to Cointelegraph, adding that users in the country can still buy and sell crypto using credit cards. or debit cards. Peer-to-Peer trading continues to operate as normal, in addition, AUD balances remaining in the accounts have been converted to Tether (USDT).
The ongoing cross-border debanking of crypto firms has prompted Binance CEO Changpeng “CZ” Zhao to consider buying the bank, he revealed during an interview.
While some warn that the risks still exist, Australian cryptocurrency exchanges have lined up to ease contagion concerns following recent events. “This reflects the regulatory environment in which we operate, or in this case, the lack of a regulatory environment,” said BTC Markets CEO Caroline Bowler.