Payments provider Cuscal, in partnership with Zepto, has implemented new banking restrictions on crypto exchanges in Australia, which has received criticism from Blockchain Australia, the nation’s industry body.
Cuscal recently ceased providing payment services to Binance Australia, resulting in Binance Australia’s inability to facilitate Australian Dollar bank transfers using PayID, attributing the issue to Cuscal without explicitly naming it. The blockchain industry in Australia has expressed dissatisfaction with recent limitations imposed by local banks on crypto payments and has invited Cuscal, other platforms, and government stakeholders to a roundtable discussion on June 27 to address the matter.
A document titled “Zepto Compliance Survey for Digital Currency Exchanges (DCE)” outlines the observed “restrictions.” As per the survey, Cuscal, the banking partner, has recently revised its Merchant guidelines to introduce new requirements applicable to all digital currency exchanges that receive support from Cuscal.
Crypto exchanges failing to comply will face discontinued support
Exchanges failing to comply with the new requirements may face the possibility of Zepto and Cuscal discontinuing their support, but a reasonable timeframe for implementation can be considered. Zepto’s survey highlights the need for appropriate controls to combat fraud and mandates a response from the exchanges by June 21.
The Blockchain Australia statement indicates that some of the requirements include a 24-hour hold on initial inbound payments of any amount, real-time verification of user identity, and undisclosed transaction limits for cryptocurrency exchange payments.
The statement also notes that the new requirements specifically target digital currency exchanges. While Blockchain Australia supports efforts to enhance secure digital transactions, it emphasizes the importance of preserving users’ freedom to decide how they spend their money and utilize their assets.
The exact number of Australian exchanges receiving payment services from Cuscal and Zepto is not publicly available. However, there are approximately 400 registered crypto exchanges in Australia fulfilling anti-money laundering and counter-terrorism financing obligations.
Blockchain Australia Chair and Digital Assets Lawyer Michael Bacina commented on the significant impact of these restrictions in Australia. He expressed concerns about the anticipated rise in scams and fraud amid economic uncertainty and acknowledged that while businesses should contribute to tackling these issues, individuals should also retain the freedom to spend their money and utilize their assets without undue restrictions.