Bitcoin Trades at $5K Discount on Binance Australia as Withdrawal Closer Approaches

On Tuesday, the prices of 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. ET, bitcoin (BTC) was trading at A$34,863 ($22,670) on Tuesday. binance australia, $7,516 ($4,913) less than the average price on most exchanges including btc market, where it was trading at A$43,000 ($28,130), Coinjar and Independent Reserve. Other assets like Ether (ETH) and Solana (SOL) also trade at about 20% discount.

Bitcoin trades at a discount on Australia’s Binance

The discount on crypto prices on Australian exchanges can be attributed to users trying to exit their positions quickly to avoid being cut off by the soon-to-expire local withdrawal route.

Earlier this month, Binance Australia informed Its users that they will be unable to withdraw fiat amounts from their bank accounts using the Australian PayID service, a popular payment method, from 5pm on June 1, 2023. The exchange said the hold was due to a decision made by its third party. Payment Service Provider and it was looking for an alternative.

On the same day as the announcement, Australian Big Four bank Westpac banned Allowing its customers to transact with all crypto exchanges including Binance Australia. Westpac revealed that this ban is part of a trial aimed at cracking down on scams and saving millions lost to such fraudulent activities. An analysis by the bank found that a third of all scam payments were taken directly to crypto exchanges, hence the decision.

Binance Australia Faces Challenges

Binance Australia has faced several challenges in the recent past. Last month, crypto exchange Finished 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 Binance Australia spokesperson said that after June 1, users can convert their Australian dollar balances to Tether USD (USDT) as long as the exchange is allowed to continue offering deposits and withdrawals. A provider is not found.