While Binance rejoices turning six, there doesn’t seem to be any moment of ease for the exchange amid the global regulatory crackdown. In a recent move, National Australia Bank (NAB), joins other banks who intend to block payments to Binance to combat fraud and scams.
Notably, NAB’s actions further add pressure on Binance, which is under the scrutiny of regulators at various locations. With the banks ganging up against high-risk cryptocurrency exchanges, including Binance, there is a fair chance that Binance could lose Australia as an important market.
In a media interaction, NAB’s head of fraud, Chris Sheehan, refrained from naming the specific cryptocurrency exchanges being banned, stressing that the initial ban will apply to “several” exchanges and could eventually extend. Sheehan, who has been a former police officer highlighted that the bank aims to maintain consistency with industry standards.
Additionally, according to local media reports, Westpac and the Commonwealth Bank had already banned payments to Binance. Similarly, the Australia and New Zealand Banking Group Limited (ANZ) plans to follow suit which, in turn, restricts Binance’s ability to deposit and withdraw fiat money from local banks.
Binance also lost its local banking partner Cuscal, which facilitated payments through PayID. Notably, these troubles for Binance come after the Australian Securities and Investment Commission (ASIC) withdrew Binance’s local derivatives license and announced a probe. Following this, Binance Australia announced its decision to shut down the local derivatives exchanges.
In the US, the Securities and Exchange Commission (SEC) alleged that Binance and its CEO, Changpeng Zhao, intentionally evaded laws and operated an illegal exchange. In its 136-page document, the SEC accused the exchange of operating without a license and offering unregistered securities. It also claimed that Binance and CEO Changpeng Zhao (CZ) commingled users’ funds.
Ever since the troubles have been on a rise and the losses for the exchange are overflowing leading to huge layoffs. According to a recent report, Binance has laid off over 1000 employees globally.
The total count of layoffs add to the previous figures reported by Todayq News where the US subsidiary of exchange laid off 50 employees in anticipation of a costly lawsuit. Simultaneously, following the leaked chats between employees, CZ blackmailed the staff to not say anything against the exchange or hand in their resignation.