Australian Bank Bars Its Customers From Using Binance Amidst Scam Concerns

Australian Bank Bars Its Customers From Using Binance

Westpac Takes Action Against Binance Amidst Scam Concerns

Australian bank Westpac has announced its decision to prohibit its clients from transacting with Binance as part of its effort to prevent fraudulent activities. The move comes amidst growing scrutiny and pressure on the operations of the major crypto exchange in the country. Westpac stated that as part of a trial, it has blocked a number of cryptocurrency exchanges to make its customers safer. Their data revealed that investment frauds accounted for almost half of all such losses, and a third of all fraud payments were transferred directly to cryptocurrency exchanges.

Westpac Bans Crypto Exchanges to Crackdown on Scams

While not explicitly naming Binance, sources suggest that the ban extends to their Australian operation. Scott Collary, Westpac’s Group Executive of Customer Services and Technology, said that while digital currency exchanges have a legitimate role in the financial ecosystem, they’ve noted that scammers are increasingly using offshore exchanges. Therefore, the new security measures, which the bank intends to trial, will better protect customers from fraudulent activities. Collary also said that it could save the bank millions lost to scams. The ban on crypto exchanges is supposed to be phased out in the coming weeks.

Binance Australia Suffers Another Setback

Westpac’s action is just the latest setback for Binance Australia. The crypto exchange was already facing severe regulatory scrutiny in the United States when the bank announced its ban. Just the same day, Binance Australia informed its clients that it would no longer support Australian dollar bank transfers via PayID, a widely used payment method. The closure of the Binance Australia Derivatives business was announced last month, citing the Australian Securities and Investments Commission’s recent engagement. The ASIC had canceled the Australian Financial Services License, which had been held by Oztures Trading Pty Ltd, trading as Binance Australia Derivatives, in response to Binance’s request.