On Tuesday, prices for bitcoin and other crypto assets were seen trading at a discount on the Australian branch of Binance, the world’s largest crypto exchange by trading volume, compared to rival local platforms.
As of 1:10 p.m., bitcoin (BTC) was trading at A$34,863 ($22,670) on Binance Australia, around AU$7,516 ($4,913) below the average price on most exchanges, including BTC markets, where it traded at AU$43,000 ($28,130), Coinjar and Independent Reserve. Other assets like Ether (ETH) and Solana (SOL) also traded at around 20% discount.
Bitcoin is trading at a discount on Binance Australia
Crypto price discounts on Australian exchanges could be attributed to users trying to exit their positions quickly to avoid being cut off from a local withdrawal route that is expected to end soon.
Earlier this month, Binance Australia informed its users that they would not be able to withdraw fiat from their bank accounts using Australia’s PayID service, a popular payment method, from 5 p.m. on June 1, 2023. The exchange said the shutdown was due to a decision made by his third-party payment service provider and that he was looking for an alternative.
On the day of the announcement, the four major Australian banks Westpac banned its customers to transact with all crypto exchanges, including Binance Australia. Westpac revealed that the ban was part of a lawsuit aimed at cracking down on scams and saving the millions lost to these fraudulent activities. The analysis conducted by the bank revealed that a third of all fraudulent payments were directly transferred to crypto exchanges, hence the decision.
Binance Australia faces challenges
Binance Australia has faced many challenges lately. Last month, the crypto exchange liquid its Australian derivatives business due to regulatory issues with the Australian Securities and Investments Commission (ASIC). The agency revoked the exchange’s license as it reviewed its local operations.
Meanwhile, a spokesperson for Binance Australia said that after June 1, users could convert their Australian dollar balances to Tether USD (USDT) to facilitate trading activities until the exchange finds a solution. provider to continue offering deposits and withdrawals.
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