Have funds on Binance? Don’t panic, here are your options

Binance has halted AUD bank transfers, but there is no reason to panic or sell your crypto at a loss.

What happened?

On June 1 2023, AEST Binance halted AUD deposits and withdrawals from bank accounts in Australia.

This was due to an issue with Binance's third-party payments provider, Cuscal.

As a result, Binance deactivated AUD markets on the exchange, meaning that Aussies were unable to sell their crypto for AUD.

But thankfully you still have several ways to withdraw your funds off the exchange, and back into your bank account.

If you want to sell your crypto for AUD, you can easily transfer it to another Australian exchange. This will avoid the volatility and lower-than-average prices currently seen on Binance.

If you want to hold on to your crypto you can withdraw it to a self-custodial wallet for extra safety, which means you aren't exposed to any of the risks of keeping it on an exchange.

Lastly, you can simply keep your cryptocurrency on Binance if you have no intention to sell it, or moving it to a wallet is not something you want to do.

Let's take a closer look at each.

Move your crypto to another Australian exchange

You can easily withdraw your cryptocurrency and move it to another Australian exchange. You can either leave it there, or sell it and withdraw AUD from the new exchange.

You can compare a list of the best exchanges in Australia in this guide. All of the exchanges in this list – except Binance – accept AUD.

If you are looking for an exchange with a similar range of coins to Binance, then you may want to consider CoinSpot, Swyftx, Coinstash.

Choosing an exchange with a wide range of coins makes it more likely that they will be able to accept the assets you have stored on Binance.

Once you have chosen a new exchange, you can withdraw your crypto from Binance by doing the following (note that these instructions are based on using a computer with the desktop version of the exchange).

1. Navigate to the Wallet tab of the menu in the top right-hand corner. Select Fiat and Spot from the drop-down menu.
2. You will see a list of cryptocurrencies you own and your balance of each. Find the cryptocurrency you want to withdraw and select Withdraw.
3. Go to your new exchange and find the deposit address for the cryptocurrency you want to withdraw. Copy this address to your clipboard. If applicable, make a note of the network of your deposit address. You will need to withdraw and deposit using the same network.
   1. Note that finding the deposit address will vary depending on the exchange you choose, but is usually found under a tab called "Wallet" or "Deposit and Withdraw".
4. Return to the Withdraw window for your chosen cryptocurrency on Binance. Paste in the deposit address from your new exchange and select your withdrawal network. Binance should alert you if the withdrawal address and network do not match, but it's a good habit to double-check it yourself.
5. Enter the amount of cryptocurrency you wish to withdraw.
6. Press Withdraw and follow the on-screen instructions, which may involve additional security measures depending on your account.
7. Once your transaction has been processed it will be sent to the blockchain. Depending on network congestion, it could take anywhere from minutes to hours before it appears in your new exchange account.

Withdraw your crypto to a wallet

Self-custody is a cornerstone of cryptocurrency.

Self-custody refers to storing your cryptocurrency in a wallet that only you own the private keys to. Private keys can be thought of like a special, extra secure password.

This is the opposite of keeping your crypto on an exchange, where the exchange ultimately controls your private keys and therefore your crypto.

By transferring your funds off an exchange and into a wallet, you help reduce the counterparty risk associated with an exchange.

The most secure way to store your crypto like this is with a hardware wallet – a specialised device similar to a USB drive.

Hardware wallets cost money (starting from about $76 AUD), but are considered the most secure way to store cryptocurrency and should be seriously considered by anyone who can't afford to lose their investment.

Read more: Compare the best hardware wallets in Australia

Alternatively, there are a range of free software-based wallets which run on a smartphone or computer.

You can read more about hardware and software wallets in our dedicated guide.

Mind you, self-custody isn't for everyone. It requires a bit of learning to get started, and the burden of responsibility shifts from the exchange to you.

You need to safely secure your backup seed phrase, which is the only way to regain access to your wallet in the event you lose your private keys or password.

There is no customer service team that can restore access to your wallet if you lose access to the private keys, unlike an exchange which usually just requires a selfie with photo ID to reset a password.

Keep your cryptocurrency on Binance

If you plan to store your cryptocurrency long-term, then it's generally advisable to move it to a self-custodial wallet.

However, if you plan to continue trading frequently, you may want to keep in on an exchange.

The only change to Binance's services in Australia is AUD deposits and withdrawals from bank accounts. You can still trade as normal.

Mind you, it's worth noting that Binance is under regulatory pressure in the US and in several other jurisdictions which may cause disruptions to its services in the future.

Also keep in mind that no exchange is 100% secure, and always at risk of hacks or human error.

We updated this article on 13 September 2023 with some minor changes to help readers navigate to the solution faster.

Disclosure: The author owns a range of cryptocurrencies at the time of writing.