The recent report from Reuters highlights the significant price difference in Bitcoin (BTC) trading on Binance’s Australian wing compared to its rival exchanges. The data shows that on Tuesday, May 30, the BTC price was nearly A$9,000 lower at Binance Australia than at other local crypto exchanges. This discrepancy seems to be a result of Binance users in Australia rushing to exit their positions, possibly due to the ongoing regulatory challenges faced by the exchange.
Bitcoin was trading at around A$34,000 ($23,062.20) on Binance Australia, whereas on other Australia-based crypto exchanges like BTC Markets, its price reached $43,000. The drop in price comes as Binance encounters disruptions in Australia from a third-party service provider, which halted its services and resulted in limited deposit and withdrawal options for customers. Due to these complications, as well as its regulatory issues worldwide, Binance had to close its Australian derivatives business and give up its financial services license.
As a response to a decision made by a third-party payment service provider, Binance AUD fiat deposits had to be ceased earlier this month. Additionally, last week, Binance decided to discontinue AUD trading pairs for cryptocurrencies, including Bitcoin, Ethereum, Dogecoin, XRP, Cardano, Solana, and MATIC. These regulatory challenges are not only limited to Australia; Binance is also facing similar situations in other global jurisdictions.
In Australia, the Australian Securities and Investments Commission (ASIC) has initiated a probe against Binance, investigating the exchange’s misclassification of traders as wholesale investors. Consequently, trading volumes on Binance Australia have dropped significantly. The current price disparity on Binance Australia suggests that investors are eager to liquidate their assets quickly before any further regulatory action takes place.
Furthermore, Binance is under investigation by regulatory authorities like the Commodity Futures Trading Commission (CFTC) for allegations of breaking the law and violating CFTC regulations. Legal action has been taken against Changpeng Zhao and three entities associated with the exchange.
While the situation unfolds, it is essential for investors to conduct their market research before making any investment decisions in cryptocurrencies. The presented content, which may include the author’s personal opinion, should be taken into account, considering the market conditions. The author or the publication does not hold any responsibility for individual financial losses in light of these developments.
Source: Coingape
