Bitcoin (BTC) is trading hands at a hefty 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.
The move comes as traders rush to cash out their crypto holdings into Australian dollars before the door for local bank withdrawals closes in a few days.
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 the PayID service are set to remain open until June 1 at 5 pm local time. The exchange has also warned its Australian clients that any Australian dollars remaining on the exchange after May 31 would be automatically converted into USDT.
The announcements have since caused a progressive rush to cash out, causing BTC prices to become heavily discounted.
At the time of publication, one BTC can be purchased for only 33,750 Australian dollars, equating to around $21,987, or 21% lower than the global spot rate.
Those hoping to capitalize on the cheaper Bitcoin may be disappointed, however.
Without the ability to deposit Australian dollars into the trading wallet and hefty premiums for converting other crypto assets into Australian dollars, users may find it difficult to get their hands on the discounted BTC.
Binance has also warned of the delisting of several crypto trading pairs with Australian dollars 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.
While AUD deposits by bank transfers are no longer available to Binance users in Australia, there are still several ways Aussie users can deposit onto the exchange.— Binance Australia (@Binance_AUS) May 27, 2023
- Credit or debit card
- Use P2P to buy and sell crypto
- Third Party Payment
Details: https://t.co/DSRhaebEfS pic.twitter.com/dQSKfJXYHK
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.
Aussie crypto broker Swyftx, which relied on Binance for its liquidity needs, h previously stated that the severing of Binance’s Australian dollar on/off-ramps would not affect its own operations.