Binance, an international cryptocurrency exchange that some Australians trusted, recently made a devastating change that has left its users disappointed. Following the footsteps of FTX, another international platform has let down Australians. On May 18th, Binance suddenly stopped accepting deposits in Australian dollars (AUD) through PayID and Bank Transfers. And to make matters worse, starting from June 1st, 2023, Binance will impose restrictions on Australians’ ability to withdraw AUD from the platform.
Fortunately, there are alternatives available for Australian users who have been affected by Binance’s actions. CoinSpot, for example, is an Australian owned exchange and has been operating for nearly a decade without any reported issues. In our detailed review of CoinSpot, it’s worth noting that they support a majority of the coins that Binance does. In addition, CoinSpot has its own NFT marketplace and serves as a fast and simple way to convert between AUD and cryptocurrencies. CoinSpot’s reputation as the largest and most trusted exchange operating in Australia, coupled with its user-friendly interface, makes it an easy alternative to recommend. Other exchanges like Cointree, Independent Reserve, and BTC Markets are also operating normally and remain accessible to Australian users.
Binance made an official announcement about its decision to halt AUD deposits and impose restrictions on AUD withdrawals for its Australian customers. The exchange claimed that this decision was due to their third-party payment provider. However, in a later article published by the Financial Review, it was revealed that the payment provider in question was Westpac, which justified these bans by labeling exchanges like Binance as “high-risk” and claiming that they are often associated with scam money.
This policy change implemented by Binance will directly impact Australian users who have actively traded or held cryptocurrencies on the platform. With the cessation of AUD deposits, users will face limitations in directly funding their Binance accounts with Australian dollars. The restrictions on AUD withdrawals will cause significant inconvenience for those who wish to convert their crypto holdings back into AUD. This situation mirrors the recent collapse of FTX, leaving Australian cryptocurrency holders on Binance stranded and forcing them to make the difficult decision of withdrawing their AUD while they still can or leaving it in limbo on the cryptocurrency platform.
It’s important to note that Binance’s decision to halt AUD deposits and restrict AUD withdrawals is likely driven by the evolving regulatory environment surrounding cryptocurrencies in Australia. As regulators aim to increase oversight in the industry, cryptocurrency exchanges must adapt and comply with new rules. In this context, third-party payment providers like banks require certainty when dealing with cryptocurrency exchanges. Binance’s policy change could be seen as a response to regulatory pressures and its failure to adapt to the changing landscape in Australia.
The industry has reacted strongly to Binance’s decision, with experts, insiders, and users expressing their disappointment and frustration. Many individuals are concerned about their holdings on Binance, and social media has been flooded with negative reactions ranging from anger to disappointment. This move by Binance may also prompt other cryptocurrency exchanges operating in Australia to review their strategies and compliance measures.
Binance’s decision to halt AUD deposits and restrict AUD withdrawals for Australian customers represents a significant setback in the country’s cryptocurrency landscape. As affected users seek alternatives, the broader impact on the market and the adaptability of cryptocurrency exchanges will become clearer in the coming months. However, in the face of Binance’s disappointing actions, platforms like CoinSpot, with their solid reputation and user-friendly services, provide a ray of hope for Australian users to continue their crypto journey seamlessly.