Binance, the world's largest cryptocurrency exchange, has been cut off from PayID. 

Binance encountered a setback this week after being removed from a major local payments service and banned by Westpac.

The move has left Binance customers unable to deposit funds onto the platform.

Binance Australia, the local branch of the multi-billion-dollar crypto exchange, announced the immediate suspension of AUD deposits via bank transfers. 

According to a spokesperson for Binance Australia, the decision was made by their third-party service provider.

Customers can still withdraw funds from the platform.

The ban on Binance by Westpac comes as part of a broader effort by the bank to prevent its customers from engaging with various crypto exchanges, including Binance, due to concerns about scams and fraudulent activities. 

Other major banks in Australia are reportedly considering similar actions.

Scott Collary, Westpac's Group Executive of Customer Services and Technology, emphasised the need for scam prevention, stating; “Since the rise of digital currency, we've noticed that scammers are increasingly using overseas exchanges. Often our customers only discover they've been scammed after the money has left the country, making recovery extremely difficult”. 

The sudden halt in withdrawals by crypto exchanges often raises concerns among users and can be indicative of underlying issues. 

Binance has attempted to highlight the safety of their crypto funds through the Secure Asset Fund for Users (SAFU), an insurance fund that offers protection in extreme situations.

It is just the latest challenge faced by Binance Australia, which recently lost its financial services licence and is currently undergoing a targeted review by the Australian Securities and Investments Commission (ASIC). 

In 2021, Binance ceased selling complex derivative products to Australian customers following concerns raised by ASIC.

Binance's international operations have also faced allegations of operating an illegal exchange and multiple willful breaches of US trading laws.