Bitcoin (BTC) is currently experiencing a significant discount on the Australian branch of the Binance crypto exchange, resulting in a price drop of up to 21% when traded against the Australian dollar.
This markdown is primarily due to traders rushing to cash out their cryptocurrency holdings into Australian dollars before the local bank withdrawal option closes in a few days.
This article will explore the recent developments on Binance Australia, the implications for BTC prices, and the challenges users may face in taking advantage of the discounted Bitcoin.
Binance Australia Suspends Australian Dollar Services
On May 18, Binance Australia announced the suspension of Australian dollar services following a decision made by its third-party payments provider.
The exchange immediately halted deposits via bank transfer and stated that withdrawals using the PayID service would remain open until June 1 at 5 pm local time.
Additionally, Binance cautioned its Australian clients that any remaining Australian dollars on the exchange after May 31 would be automatically converted into USDT.
Discounted BTC Prices Result from Cash-Out Rush
The recent announcements from Binance Australia have triggered a rush among traders to cash out their cryptocurrency holdings, leading to heavily discounted BTC prices.
Presently, one BTC can be acquired for just 33,750 Australian dollars, which equates to approximately $21,987, representing a substantial 21% reduction compared to the global spot rate.
Challenges in Capitalizing on Discounted BTC
Although the discounted Bitcoin may seem enticing, users may encounter difficulties in taking advantage of this opportunity.
The suspension of Australian dollar deposits into the trading wallet, coupled with significant premiums for converting other crypto assets into Australian dollars, poses challenges for users looking to acquire the discounted BTC.
Impending Delisting and Risk Warning
Binance has issued warnings regarding the delisting of several crypto trading pairs with Australian dollars on June 1, urging users to be cautious of the associated risks.
Traders must pay attention to these developments and make informed decisions when trading on the platform.
Binance’s Efforts to Seek an Alternate Provider
Despite the current situation, Binance is actively seeking an alternate provider to ensure the continuity of Australian dollar deposits and withdrawals.
While the ability to buy and sell crypto using credit or debit cards is still available, the rates for these transactions appear to be aligned with the market.
Regulatory Issues Faced by Binance
Binance has faced regulatory challenges in Australia, including the cancellation of its derivatives license by the Australian Securities and Investments Commission (ASIC) last month. Additionally, the exchange is under investigation by the U.S. Commodities and Futures Trading Commission (CFTC).