Australian Exchanges Step In After Binance’s Payment Suspension
Australian-based cryptocurrency exchanges have moved quickly to calm market concerns following Binance Australia’s suspension of Australian dollar (AUD) deposits and withdrawals.
On May 18, Binance Australia announced that its payments provider Zepto was instructed by its partner Cuscal to offboard the exchange, effectively halting AUD transactions for Binance users.
Industry Leaders Downplay Contagion Fears
Executives from several major local exchanges told Cointelegraph the issue appears isolated to Binance rather than a systemic threat to the industry.
Adrian Przelozny, CEO of Independent Reserve, said the situation “appears to be Binance-specific,” emphasizing that AUD transactions on his platform remain fully operational.
BTC Markets CEO Caroline Bowler similarly reassured traders, stating there was “no cause for concern” and that her exchange’s payment services are unaffected. She added that BTC Markets works closely with its provider “specifically on scams,” ensuring compliance and reliability.
Kraken Australia’s managing director, Jonathon Miller, described the market as having “only a couple of crypto-friendly payment providers” and said Kraken maintains “a really strong relationship” with them.
“It’s not great for the industry when a business loses access overnight,” Miller said, “but it seems part of a broader story surrounding that enterprise for some time.”
Swyftx and Others Note Rising Registrations
Jason Titman, COO of Swyftx, said deposits and withdrawals on his exchange continue to perform normally. He also reported a surge in new registrations and activity as users migrate from Binance to other local platforms.
Titman added that Swyftx works “closely behind the scenes with Australian banks and law enforcement” to maintain integrity and user safety.
Debanking Risks Still Present
While most executives assured traders of operational stability, they also acknowledged persistent challenges in Australia’s crypto-banking landscape.
Bowler warned that the “risk of debanking is ever-present” due to the lack of a clear regulatory framework for crypto firms in the country. She urged lawmakers to establish proper legislation that would give banks “a degree of comfort” when working with digital asset companies.
The Need for Regulatory Clarity
Kraken’s Miller highlighted that the issue extends beyond Australia, noting that similar challenges have emerged globally after U.S. bank collapses and restrictions on crypto firms.
He added that Kraken has already obtained or is pursuing licenses in Canada, Europe, and the United Kingdom — regions with clearer legal frameworks for digital assets.
“Australia is sitting here with no regime at all,” Miller said, suggesting that clearer laws would stabilize relationships between banks and crypto companies.
Looking Ahead
Despite Binance Australia’s setback, local exchanges remain optimistic. Leaders from Independent Reserve, BTC Markets, Kraken, and Swyftx continue to process AUD transactions and emphasize trust, compliance, and transparency as they navigate Australia’s evolving regulatory environment.
The event underscores an urgent call for regulatory reform — one that could shape the future of Australia’s crypto industry and its connection to the broader financial system.
