Binance.US solves USD withdrawal issues but warns it won’t last long

June 23, 2023 Coin Telegraph

Banks

“While USD withdrawal remains fully operational on the platform today, we expect our banking partners to discontinue that service in the near future,” said Binance.US.

U.S. crypto exchange Binance.US has informed customers it has resolved its U.S. dollar withdrawal issues after working with its banking partners but warns the relief may not last.

The reportedly independent subsidiary of crypto exchange Binance told customers in a June 22 update that its system remains fully operational and that USD withdrawal requests are expected to go back to their normal five-business-day turnaround.

On June 9, the exchange suspended dollar deposits and notified its customers of an incoming pause to fiat withdrawal channels amid its ongoing battle with the Securities and Exchange Commission.

At the time, it also warned customers that its banking partners were preparing to pause fiat (USD) withdrawal channels as early as June 13, however, that didn't end up coming to pass as yet.

In its most recent statement, Binance.US has encouraged any customers that have a failed withdrawal attempt to resubmit their requests “as our systems remain fully operational,” but cautioned that the relief may not be permanent.

“While USD withdrawal remains fully operational on the platform today, we expect our banking partners to discontinue that service in the near future.”

Binance.US is also encouraging its users “use, withdraw, or convert your USD to a stablecoin to continue crypto-to-crypto trading,” as it transitions to a crypto-only exchange.

Reminder: As we transition to a crypto-only exchange, https://t.co/gM6e3xb9BX will remove select USD Advanced Trading pairs from our platform on 6/26 at 8 p.m. PDT / 11 p.m. EDT.

While USD withdrawals remain fully operational, we encourage you to use, withdraw, or convert your… pic.twitter.com/LWDWVvwtoq
— Binance.US Customer Support (@BinanceUShelp) June 22, 2023

Any remaining USD balances held in customer accounts could be converted into Tether (USDT) at a future date, it noted.

The announcement also included details of more USDT trading pairs with ANKR, DAI, DASH, HBAR, ICX, IOTA, RVN, WAVES, XNO, XTZ, and ZIL being added on June 26.

However, it noted that it will remove most “USD Advanced Trading pairs” from the platform on the same date. Of the 150 crypto assets that Binance.US supports, only BTC, ETH, ADA, BNB, LTC, MATIC, SOL, VET, USDC, and USDT will be tradable against the dollar.

The company has also had problems with banking partners in Australia. In May, Bitcoin prices fell to a 20% discount on the Australian branch of Binance when local banking and payments partners suspended their services causing a rush to sell and cash out.

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Major Australian bank to decline ‘certain’ payments to crypto exchanges

June 8, 2023 Coin Telegraph

CBA

James Roberts, Commonwealth Bank General Manager of Group Fraud Management Services cited a huge scale of "investment scams" involving crypto exchanges.

Commonwealth Bank (CBA), the largest bank in Australia, has said it will decline or temporarily hold certain payments to cryptocurrency exchanges, citing the risk of scammers.

The move comes amid two major global exchanges facing a lawsuit from the United States securities regulator and is just a few weeks after another major bank, Westpac banned customers from transacting with crypto exchange Binance.

On June 8, CBA said it would decline or put a 24-hour hold on "certain payments to cryptocurrency exchanges." The bank did not explain which exchanges or payment types that would be impacted by the new measures.

Reporting from @jessicasier @FinancialReview that @CommBank have banned AUD transfers to “high-risk” crypto exchanges & limited transactions with others to $10k per month, with a 24 hr delay. $700k per day leaves CBA as scammed money heading to crypto. Banks & the crypto industry…
— Caroline Bowler (@CaroBowler) June 8, 2023

"Commonwealth Bank has today introduced new measures to help protect customers from scam risks associated with making certain payments to cryptocurrency exchanges," it wrote in a statement.

It added a $6,650 ($10,000 Australian dollar) per month limit on customers sending funds to crypto exchanges to purchase cryptocurrencies would be introduced "in the coming months."

"From today, CBA will decline or hold for 24 hours certain payments to cryptocurrency exchanges. In coming months the Bank will also introduce $10,000 limits in a calendar month where the Bank can identify the customer payments are to exchanges for cryptocurrency purchases," it said.

The general manager of CBA's fraud management services, James Roberts, claimed that "scammers globally are capitalizing" on the interest in crypto, pretending to be "legitimate investment opportunities or diverting funds into cryptocurrency exchanges."

The bank said the measure would be "subject to ongoing review" and it would monitor the impact of the measures.

Bitcoin selling for $5K cheaper on Binance Australia as fiat ramp closes

May 30, 2023 Coin Telegraph

Bitcoin selling for K cheaper on Binance Australia as fiat ramp closes

AUD

One Bitcoin can be bought for the equivalent of $22,000 on Binance Australia if paid using Australian dollars. The problem is getting the funds there.

Bitcoin (BTC) is trading hands at a hefty discount on the Australian branch of the Binance crypto exchange, with the price of Bitcoin down as much as 21% if traded against the Australian dollar.

The move comes as traders rush to cash out their crypto holdings into Australian dollars before the door for local bank withdrawals closes in a few days.

On May 18, Binance Australia informed users that it is suspending Australian dollar services after a decision by its third-party payments provider.

Deposits via bank transfer were halted immediately, while withdrawals using the PayID service are set to remain open until June 1 at 5 pm local time. The exchange has also warned its Australian clients that any Australian dollars remaining on the exchange after May 31 would be automatically converted into USDT.

The announcements have since caused a progressive rush to cash out, causing BTC prices to become heavily discounted.

At the time of publication, one BTC can be purchased for only 33,750 Australian dollars, equating to around $21,987, or 21% lower than the global spot rate.

*BTC/AUD rate on May 30. Source: Binance Australia*

Those hoping to capitalize on the cheaper Bitcoin may be disappointed, however.

Without the ability to deposit Australian dollars into the trading wallet and hefty premiums for converting other crypto assets into Australian dollars, users may find it difficult to get their hands on the discounted BTC.

*AUD/USDT trading pair. Source: Binance Australia*

Binance has also warned of the delisting of several crypto trading pairs with Australian dollars on June 1 and for users to “pay attention to the risks when trading.”

Meanwhile, Binance said it is continuing to look for an alternate provider to continue offering Australian dollar deposits and withdrawals. Currently, the ability to buy and sell crypto using credit or debit cards is still available, though these rates appear to be in line with the market.

While AUD deposits by bank transfers are no longer available to Binance users in Australia, there are still several ways Aussie users can deposit onto the exchange.

- Credit or debit card
- Use P2P to buy and sell crypto
- Third Party Payment

Details: https://t.co/DSRhaebEfS pic.twitter.com/dQSKfJXYHK
— Binance Australia (@Binance_AUS) May 27, 2023

Binance has been in hot water with regulators down under as its derivatives license was canceled by the Australian Securities and Investments Commission last month. It is also facing a massive investigation by the U.S. Commodities and Futures Trading Commission.

Aussie crypto broker Swyftx, which relied on Binance for its liquidity needs, h previously stated that the severing of Binance’s Australian dollar on/off-ramps would not affect its own operations.

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