Binance Australia Loses PayID Access: What It Means for Users and the Future of Crypto Exchanges

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In a recent announcement, Binance‘s Australian branch declared that it can no longer facilitate PayID deposits for its users. The crypto exchange attributed the loss of the onramp to a decision made by its third-party payment service provider, reportedly Cuscal, which has yet to comment on the matter. As a result, bank transfer withdrawals have also been affected. Binance is currently striving to find an alternative provider to continue offering AUD deposits and withdrawals to its users.

PayID, a domestic payments organization, allows users to give memorable pieces of information, such as mobile numbers or email addresses, instead of bank account numbers to receive payments. The announcement comes over a month after the Australian Securities and Investments Commission (ASIC) canceled Binance’s license for its derivatives business. The exchange had requested the cancellation to pursue a more focused approach. Neither Binance nor PayID have commented immediately on the situation.

The issue with PayID is another hurdle for Binance, which is already facing investigations by at least four different U.S. government agencies, including the SEC, DOJ, IRS, and CFTC. In March, the Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance with a Chicago federal court, accusing the exchange of unauthorized derivatives trading by offering futures, swaps, and options on leading cryptocurrencies.

The lawsuit also accuses Binance of having insufficient anti-money laundering (AML) and know-your-customer (KYC) controls and allegedly evading or helping U.S. clients evade regulators. At the end of April, reports surfaced that Binance CEO, Changpeng Zhao, has employed lawyers to defend himself against these multiple legal threats.

Around the same time, bankrupt crypto lender Voyager claimed that Binance.US had terminated a deal to acquire the company

Source: Decrypt

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