Crypto exchange operator Binance sent a message to clients yesterday saying bank transfers had been suspended. It was later revealed that Westpac had debanked the controversial company.
Westpac issued a statement, without naming Binance, saying it has introduced cryptocurrency blocks as part of anti-scam measures.
It is the latest setback for the company, which lost its Australian derivatives trading licence last month and is being sued by the US Commodity Futures Trading Commission, which has alleged illegal exchange activities and “sham” compliance.
Binance said it is looking for an alternative provider, so it can continue to offer Australian dollar facilities.
Westpac group executive of customer services and technology, Scott Collary, said in a media release: “Digital exchanges have a legitimate role to play in the financial ecosystem. But since the rise of digital currency, we’ve noticed that scammers are increasingly using overseas exchanges.
“The trial of our new security measures will better protect customers from scams.”