Former Binance Payment Partner Cuscal Imposes New Crypto Restrictions

Key Points:

• Blockchain Australia stated that Australian payment provider Cuscal, through its partner Zepto, has imposed new banking restrictions on cryptocurrency exchanges in Australia.
• Last month, the company cut off payment services to Binance Australia.
• Blockchain Australia has condemned recent restrictions on crypto payments by local banks.

Blockchain Australia revealed that Cuscal, an Australian payment service provider, has put additional banking limitations on cryptocurrency exchanges in Australia via its partner Zepto.

Cuscal pulled down payment services for Binance Australia last month. Binance Australia said at the time that it would no longer be able to utilize PayID to make bank transactions in Australian dollars, citing Cuscal but without identifying them.

Blockchain Australia has denounced recent limits on crypto payments imposed by local banks and has invited platforms such as Cuscal and government stakeholders to a roundtable discussion on the topic on June 27.

“The new requirements appear to only be targeted to digital currency exchanges. Blockchain Australia supports efforts to enhance and promote secure digital transactions while still preserving users’ freedom to decide how to spend their own money and use their own assets,” according to the statement.

According to the Blockchain Australia release, some of the limitations include a 24-hour hold on first-time incoming payments of any amount, real-time verification of user identification, and undisclosed transaction limits on cryptocurrency exchange payments.

Since the data is not public, it is unclear how many Australian exchanges Cuscal, and Zepto offer payment services to, although Australia has about 400 crypto exchanges licensed for anti-money-laundering and counter-terrorism funding duties.

Cuscal, Binance Australia’s third-party payment provider, expressed worries about scams and fraud related to activities like account fraud, ID takeover, and crypto transactions. The company hinted at the consequences of these fraudulent actions when asked why they ceased their services for the exchange.

Binance Australia has been actively seeking a replacement payment partner after the payment company’s discontinuation of support. Nonetheless, Binance has said that both Zepto and Cuscal are still accessible to let customers withdraw Australian dollars, assuring the continuance of services for such transactions.

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