After debanking exchange, Binance Australia partner suggests increasing 'scams' trend.

2023-05-19

Summary:
  • Cuscal declined to comment on why it pulled support for Binance Australia
  • Cuscal hinted the impact of "scams and fraud" after being questioned why it offboarded Binance Australia
  • Cuscal did not specifically address Binance or crypto exchanges in its statement to Cointelegraph
  • Binance Australia's AUD services were suspended with immediate effect citing a decision made by the third-party payment service provider on May 18
  • Cuscal reiterates its commitment and important role in identifying and implementing detection services for clients across the Australian payments system
  • Cuscal will terminate any clients or customers and merchants that do not meet its onboarding and compliance requirements
  • Zepto was instructed to offboard Binance by Cuscal
  • Binance Australia is searching for an alternative payments partner
  • Zepto and Cuscal are continuing to support users wishing to withdraw Australian dollars


Full article:

Cuscal, the company that handles the Australian dollar on- and off-ramping for the exchange, declined to comment specifically on why it decided to pull support for Binance Australia.

The third-party payments provider for Binance Australia, Cuscal, hinted about the impact of “scams and fraud” related to “account fraud, ID takeover and crypto activity” after being questioned why it offboarded the exchange on May 18.

The payments provider did not specifically address Binance or crypto exchanges in its statement to Cointelegraph and declined to elaborate on why it pulled support for Binance Australia specifically.

A spokesperson for the Sydney-based B2B financial services firm told Cointelegraph that it’s “focused on supporting the industry in protecting Australians from financial crimes and scams."

“Following recent media attention in relation to the impact of scams and fraud in Australia with particular focus on account fraud, ID takeover and crypto activity, Cuscal reiterates its commitment and important role in identifying and implementing detection services for our clients across the Australian payments system,” the accompanying statement from Cuscal wrote.

It added it “has, and will continue to, terminate any clients or their customers and/or merchants” that do not meet its onboarding and compliance requirements.

It declined to comment specifically on Binance Australia or why it instructed its partner payments firm Zepto to “offboard” the exchange, saying it doesn’t “have a comment on any other parties at this point.”

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On May 18, Binance Australia said its Australian dollar services were suspended “with immediate effect," citing a “decision made by our third party payment service provider.”

A Zepto spokesperson told Cointelegraph at the time that it “processes payments for Binance Australia” and “our partner, Cuscal, instructed us to offboard Binance.”

Binance Australia has been on the hunt for an alternative payments partner since. Binance said Zepto and Cuscal are continuing to support users wishing to withdraw Australian dollars.

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Source: cointelegraph.com

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