Binance Australia, the local arm of the leading crypto exchange, has suspended Australian dollar (AUD) deposits and withdrawals by bank transfer using PayID, a popular instant payment method.
The exchange stated that it is looking for an alternative provider and assured users that their funds were safe.
PayID is a secure payment service on the New Payments Platform (NPP) that enables users to send or receive money instantly using an email address or phone number instead of a bank account number or BSB.
PayID is supported by over 100 banks and credit unions in Australia, including the big four Australian banks.
Reason for PayID Service Suspension
Binance Australia announced on May 18 that it would no longer support AUD bank transfers using PayID “due to a decision made” by its third-party payment service provider.
A May 22 update said the services would continue until June 1, but the latest tweet on June 3 said the services had been halted.
The exchange did not disclose the name of the third-party provider or the rationale behind its decision. However, it stated that it is “working hard to find an alternative provider” and will update users via email.
Additionally, Binance Australia reassured users that their funds are safe and protected by the Secure Asset Fund for Users (SAFU). This reserve fund covers losses in case of theft or hack. As of 2020, the exchange reported having over $1 billion in SAFU funds.
Alternative Purchase and Sale Methods on Binance Australia
Binance Australia said users can still buy and sell crypto using credit or debit cards, which Simplex, a fiat-to-crypto payment service, processes. Users can also use the peer-to-peer (P2P) marketplace to trade cryptocurrencies directly with other users.
Users who wish to withdraw their crypto to fiat can send their tokens to another Australian crypto exchange that supports AUD withdrawals, such as CoinSpot or Swyftx, and then transfer the money to their bank accounts.
The service interruption comes after the Australian Securities and Investments Commission (ASIC) revoked Binance Australia Derivatives’ financial license in April following a review of Binance’s local operations.
According to the regulator, Binance did not meet its obligations as a licensee.
