The move affected approximately 1 million customers based in Australia, leaving them in a state of uncertainty. While the exact reasons for the debanking remain unclear, a Cuscal spokesperson had previously pointed towards crypto-related “scams and fraud”. This incident fueled concerns among Binance customers, but the tone shifted once it became apparent that the larger Australian crypto industry was being impacted by the banking changes.
Simultaneously, other major Australian banks, such as Westpac and Commonwealth Bank, also began blocking payments to crypto exchanges. This alarmed the community and posed challenges for Binance Australia in their search for an alternative third-party payments provider. While there are other options available, Rose admitted that Cuscal holds a significant portion of the market in this industry.
Despite the loss of access to its banking partner, Rose claimed that the situation has not severely impacted Binance’s business. Users are now resorting to alternative methods, including using bank cards for purchases and deposits, which are still supported by the platform.
While the Australian crypto industry relies on several crypto-friendly payment providers, such as Monoova, Zai, and Zepto, all these providers are partnered with Cuscal to access the local banking system. Consequently, the industry is now in dire need of sensible regulation and licensing to ensure that such incidents aren’t repeated.
Rose also urged Australian authorities to move swiftly in implementing new regulations and licensing, as other countries are already making progress in this domain. According to him, there is an opportunity for Australia to excel in the crypto space, but a risk looms if they don’t act quickly. With the global crypto landscape rapidly evolving, the clock is ticking for nations like Australia to effectively address the challenges posed by the industry and create a favorable environment for growth.
Source: Cointelegraph
