Bitcoin’s 21% Discount on Binance Australia: Panic Withdrawals & Future Consequences

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Bitcoin is trading at a significant discount on the Australian branch of the Binance crypto exchange, with the price of Bitcoin down as much as 21% if traded against the Australian dollar. This comes as traders rush to cash out their crypto holdings into Australian dollars before the door for AUD bank withdrawals closes on June 1 at 5 pm local time.

On May 18, Binance Australia informed users that it is suspending Australian dollar services after a decision by its third-party payments provider. Deposits via bank transfer were halted immediately, while withdrawals using PayID would remain open till June 1 at 5 pm local time. The exchange has also warned its Australian clients that any AUD remaining on the exchange after May 31 would be automatically converted into USDT. These announcements have since caused a progressive rush to cash out, resulting in heavily discounted BTC prices.

At the time of publication, one BTC can be purchased for only $33,750 AUD, equating to around $21,987 or 21% lower than the global spot rate. However, those hoping to capitalize on the cheaper Bitcoin may be disappointed. Without the ability to deposit AUD into the trading wallet and hefty premiums for converting other crypto assets into AUD, users might find it difficult to get their hands on the discounted BTC.

Binance has also warned of the delisting of several crypto trading pairs with AUD on June 1 and for users to “pay attention to the risks when trading.” Meanwhile, Binance said it is continuing to look for an alternate provider to continue offering Australian dollar deposits and withdrawals. Currently, the ability to buy and sell crypto using credit or debit cards is still available, though these rates appear to be in line with the market.

Binance has been in hot water with regulators down under as its derivatives license was canceled by the Australian Securities and Investments Commission last month. It is also facing a massive investigation by the U.S. Commodities and Futures Trading Commission (CFTC). Aussie crypto broker Swyftx, which relied on Binance for its liquidity needs, previously stated that severing AUD on/off-ramps at the exchange would not affect Swyftx operations.

Source: Cointelegraph

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