The decision of Cuscal, the third-party payments provider for Binance Australia, to discontinue its support for the exchange has shed light on the impact of “scams and fraud” related to various activities such as account fraud, ID takeover, and crypto transactions.
Binance Australia recently announced the suspension of its Australian dollar fiat services in the country, attributing the decision to the financial services company Cuscal. When questioned about the specific reason for withdrawing support, Cuscal’s spokesperson did not provide further details, and the firm’s official statement did not mention Binance or crypto exchanges.
However, Cuscal did release a statement addressing the recent media attention surrounding scams and fraud in Australia, emphasising its commitment and role in protecting clients within the Australian payments system. Cuscal would terminate any clients or merchants that fail to meet the onboarding and compliance requirements. The firm stressed that it would support the industry and safeguards Australians from financial crimes and scams.
Binance is suspending AUD fiat services in Australia.
Got this email this morning.
Very disappointing as it was one of my favourite on/off ramps.
Chokepoint is real.. pic.twitter.com/ZYiWY3aO0C
— Miles Deutscher (@milesdeutscher) May 18, 2023
Regarding the offboarding of Binance Australia, a spokesperson from Zepto, the partner payments firm of Cuscal, confirmed that they process payments for Binance Australia and were instructed by Cuscal to cease the association. However, Cuscal refrained from providing additional information on why the decision was made or commenting on other parties involved.
Binance Australia promptly announced the immediate suspension of its Australian dollar services on May 18, citing the decision of their third-party payment service provider. Meanwhile, the exchange has been actively searching for an alternative payment partner. Zepto and Cuscal assist users who wish to withdraw Australian dollars from the platform.