Bitcoin (BTC) enthusiasts in Australia are witnessing an eye-catching phenomenon on Binance‘s Australian platform. As of late, the cryptocurrency is listed at a massive 20% discount compared to its standard price, with one BTC trading for nearly $35,875 AUD (about $23,457). This figure is in stark contrast to the average Bitcoin price on other exchanges, which hovers around $42,500 AUD according to CryptoCompare.
A spokesperson from Binance attributes the dramatic price difference to the recent removal of fiat on-ramp services by their payment processor’s banking partner. With the off-ramp closure looming on June 1st, some Australian users have started withdrawing their AUD holdings from the platform in advance. Binance informed its users about the on-ramp’s removal on May 18th and advised that any remaining Australian dollars be automatically converted into the stablecoin Tether (USDT) after May 31st.
Consequently, AUD pairs have experienced less liquidity, impacting their pricing. Binance plans to delist the remaining AUD pairs in line with the closure of fiat off-ramp services. However, the spokesperson adds that they remain focused on securing additional fiat relationships to service their users.
While the discounted Bitcoin on Binance’s Australian platform may seem like an appealing arbitrage opportunity, users still face numerous considerable challenges. For instance, the platform has ceased accepting deposits in Australian dollars, and converting other cryptocurrencies into Australian dollars now entails significant premiums. Furthermore, Binance intends to delist several trading pairs with the Australian dollar on June 1st, adding another layer of complexity to the trading experience for its users.
As Binance works towards re-establishing its AUD trading capabilities, users can still purchase and sell cryptocurrencies using credit or debit cards with transaction rates currently aligned with the market.
However, Binance’s troubles do not end with the Australian platform. The crypto exchange giant is grappling with mounting regulatory scrutiny from multiple government agencies. The Australian Securities and Investments Commission recently rescinded its derivatives license at the exchange’s request. Moreover, Binance is currently the subject of investigations by at least four different U.S. government agencies, including the SEC, DOJ, IRS, and, most recently, the CFTC. The charges range from violating derivative trading rules to tax offenses.
In conclusion, while Binance’s discounted Bitcoin prices in Australia may arouse curiosity, it’s essential to consider the ongoing challenges faced by the exchange. Whether the exchange can navigate these hurdles and restore its previous functionality remains to be seen, but crypto enthusiasts will be paying close attention.
Source: Decrypt
