Binance Australia users bought Bitcoin for the equivalent of $22,000 on Binance Australia if they paid with Australian dollars.
Binance Australia Users Selling Bitcoin for $5K Cheaper
Bitcoin is being traded at a significant discount on the Australian platform of the Binance cryptocurrency exchange. The price of Bitcoin has dropped by up to 21% when exchanged with the Australian dollar. This decline in price is a result of traders rushing to convert their cryptocurrency holdings into Australian dollars before local bank withdrawals are no longer available in a few days.
Binance Australia announced on May 18 that it would suspend its Australian dollar services due to a decision made by its third-party payments provider. Deposits through bank transfers were immediately stopped, while withdrawals using the PayID service will remain open until June 1 at 5 pm local time.
The exchange has cautioned its Australian customers that any remaining Australian dollars on the platform after May 31 will be automatically converted into USDT.
These announcements have led to a growing trend of users cashing out their holdings, causing a significant drop in BTC prices. Currently, one BTC can be purchased for only 33,750 Australian dollars, which is approximately $21,987 or 21% lower than the global spot rate. However, individuals aiming to take advantage of the discounted Bitcoin may face disappointment.
Due to the inability to deposit Australian dollars into the trading wallet and high fees for converting other cryptocurrencies into Australian dollars, users may encounter difficulties in accessing the discounted BTC.
Additionally, Binance has issued a warning regarding the delisting of several crypto trading pairs with Australian dollars on June 1 and advised users to be cautious of the risks associated with trading.
Meanwhile, Binance has stated that it is actively seeking an alternative provider to continue offering Australian dollar deposits and withdrawals. Currently, users still have the option to buy and sell cryptocurrencies using credit or debit cards, with rates aligning with the market.
Binance has faced regulatory challenges in Australia, as its derivatives license was revoked by the Australian Securities and Investments Commission the previous month. Moreover, it is undergoing a significant investigation by the U.S. Commodities and Futures Trading Commission.
Despite Binance’s decision to suspend Australian dollar on/off-ramps, Swyftx, an Australian crypto broker relying on Binance for liquidity, has previously stated that its own operations would remain unaffected.
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