Westpac Bans Customers From Trading With Binance
Westpac, one of Australia’s leading banks, has taken a significant step to protect its customers by banning transactions with Binance, a controversial global cryptocurrency exchange. This move is part of a broader effort by Westpac to combat the increasing losses resulting from scams.
Sydney-based Westpac Bank has banned customers from trading with Binance, AFR reported. Meanwhile, Binance Australia customers were told they could no longer use PayID to transfer Australian dollars into their Binance accounts due to restrictions placed on the exchange by a…
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Protecting Customers from Scams
Scott Collary, Westpac’s group executive of customer services and technology, emphasized the importance of digital exchanges in the financial ecosystem but highlighted the rising use of overseas exchanges by scammers. Often, customers only discover they have been scammed after the funds have left the country, making recovery extremely challenging. The implementation of new security measures aims to shield customers from such scams.
According to recent data from Westpac, investment scams account for approximately half of all scam losses, with a third of scam payments directly transferred to cryptocurrency exchanges. This highlights the need for stringent measures to protect customers from falling victim to fraudulent activities.
Coinciding with Westpac’s ban, Binance customers were informed that they could no longer utilize PayID to transfer Australian dollars into their Binance accounts. Binance attributed this change to restrictions imposed by a third-party provider, temporarily affecting bank transfer withdrawals. However, the exchange assured customers that they could still conduct cryptocurrency transactions using credit or debit cards while working to find an alternative provider for Australian dollar deposits and withdrawals.
Lawsuit against Binance
This development follows the cancellation of Binance Australia’s derivatives license by the Australian regulator just a month ago. Additionally, Binance and its CEO, Changpeng Zhao, face a lawsuit filed by the US Commodity Futures Trading Commission (CFTC) in March. The lawsuit alleges that Binance operated an illegal exchange and a sham compliance program, deliberately evading US law by soliciting American customers for its derivatives business.
Westpac’s decision to prohibit transactions with Binance reflects the growing concerns surrounding the exchange’s practices and the need for increased security measures. As cryptocurrency continues to gain prominence in the financial landscape, banks and regulators are taking steps to mitigate the risks associated with scams and fraudulent activities in the digital currency space.
