Bitcoin Trades At Steep Discount On Binance Australia

Matthew Broersma,
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Bitcoin trades at discounts of up to 21 percent on Binance Australia as users seek to cash out ahead of 1 June deadline

Bitcoin has begun trading at a steep discount of up to 21 percent against the Australian dollar on Binance’s Australian exchange as customers seek to cash out ahead of a 1 June deadline.

Binance Australia informed users on 18 May that it was suspending Australian dollar services at the end of the month following a decision by a third-party payments provider.

The move meant deposits via bank transfer were halted immediately, while withdrawals into the Australian dollar via the PayID service are to be halted on 1 June as of 5 p.m. local time.

As a result users have progressively rushed to cash out and as of Tuesday Bitcoin was selling at about A$34,000 ($23,062) on Binance Australia, compared with about A$43,000 on other Australian exchanges such as BTC Markets.

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Binance chief executive Changpeng Zhao. Image credit: Binance

Cashing out

Bitcoin was trading at about $27,760 in markets outside Australia, or the equivalent of around A$42,440.

“Due to the recent removal of fiat on-ramp services by our payment processor’s banking partner, some Australian users have been withdrawing their AUD holdings from the platform in advance of the off-ramp closure on 1 June,” Binance said in a statement.

“As a result, AUD pairs have experienced less liquidity which has impacted their pricing. We will be delisting remaining AUD pairs in line with the closure of fiat off-ramp services.”

Australian dollars remaining on the exchange after 31 May are to be automatically converted to USDT, a US dollar-linked stablecoin.

Derivatives probe

Binance said it is continuing to look for an alternate provider for Australian dollar deposits and withdrawals.

Users can continue to buy or sell crypto using credit or debit cards, with those rates appearing to be roughly in line with the wider market.

Separately, Binance said it would be withdrawing its derivatives business in Australia after its licence was cancelled by the Australian Securities and Investments Commission amidst an investigation.

The company is also facing a probe by the US Commodities and Futures Trading Commission amidst heightened global scrutiny worldwide.