Binance Australia said on Thursday it could no longer use PayID for Australian dollar bank transfers.

Binance Australia said on Twitter that it was caused by a third-party payment service provider and the exchange was looking for a replacement.

Australian users can still buy and sell cryptocurrencies using credit or debit cards, and Binance's peer-to-peer marketplace is operating as usual.

Crypto.com, Binance's rival, is also facing a crisis from the banking sector. Faced with the collapse of Silvergate Bank, the withdrawal of Metropolitan Commercial Bank from the cryptocurrency industry, and the freezing of the euro accounts of its former partner Transactive System, its dollar deposit function was also hampered, threatening the flow of funds on the exchange.

According to Crypto.com users, credit and debit cards are the only way to deposit money.

At the same time, the Australian Securities and Investments Commission (ASIC) has been reviewing Binance's derivatives business after it misclassified 500 users as "wholesale investors," a business that is banned from retail traders under local regulations. This led Binance to shut down the local operation.

Binance has promised full compensation to affected users.