Binance Australia Head, Ben Rose, revealed that the exchange received a mere 12 hours’ notice from its payments partner before being disconnected from the local banking system in a surprising turn of events.
During the late hours of the night, Binance Australia’s team was abruptly informed of their disconnection from the Australian banking system. The exchange’s regional manager, Ben Rose, claimed that there was no prior warning, consultation, or opportunity for resolution.
Binance Australia Suspends Dollar Services After Banking Partner’s Decision
On May 18, Binance Australia made an announcement stating the suspension of its dollar services following instructions given to its payments provider, Zepto, to cease support for Binance by Cuscal, Zepto’s partner in banking and payments.
Speaking at the Australian Blockchain Week on June 26, Rose informed the audience that approximately 1 million customers based in Australia were affected by this action.
“We were notified about the termination of our banking services with only 24 hours’ notice at 11:30 pm. Later, it was reduced to just 12 hours, leaving us with our banking support abruptly cut off,” said Rose. He also mentioned that the reasons provided were not entirely clear and had negative implications in the media. Previously, a spokesperson from Cuscal declined to comment on matters related to Binance Australia but did allude to “scams and fraud” in the crypto realm.
Initially, the limited information caused concern among Binance customers. However, Rose noted that “the tone changed quickly” when it became evident that the broader local crypto industry was impacted by these banking changes.
On the same day that Cuscal ceased its partnership with Binance, the “Big Four” bank, Westpac, announced trials to block payments to cryptocurrency exchanges. Less than a month later, another major Australian bank, Commonwealth Bank, initiated similar payment restrictions related to cryptocurrencies.
When asked about Binance Australia’s search for an alternative third-party payments provider in an interview with Cointelegraph, Rose declined to provide further details as discussions were ongoing.
While Rose acknowledged the existence of other providers, he admitted that Cuscal “holds the majority of this industry’s banking relationships.”
Australia’s crypto industry has heavily relied on crypto-friendly payments providers such as Monoova, Zai, and Zepto, all of whom access the local banking system through partnerships with Cuscal.
“Minimal Impact on Business: Binance Users Adapt with Alternative Methods, Says Rose”
During his on-stage interview, Rose claimed that losing access to their banking partner had not significantly impacted the business. He stated that Binance users have resorted to alternative methods, likely utilizing purchases and deposits via bank cards, which are still supported on the platform.
Rose emphasized the importance of collaboration with regulators and the banking sector, suggesting the implementation of “sensible licensing” for the industry.
“We urge Australia to take swift action because jurisdictions worldwide are already progressing,” Rose emphasized. “We have an opportunity as a country, but there is also a risk if we do not promptly pursue licensing.”