Bitcoin (BTC) has witnessed a substantial drop in value on the Australian branch of the Binance cryptocurrency exchange, resulting in a discount of up to 21% when traded against the Australian dollar.
This decline follows an impending deadline for local bank withdrawals, prompting traders to convert their crypto holdings into Australian dollars before the withdrawal option ceases.
Binance Australia’s Services Suspension
On May 18, Binance Australia announced the suspension of Australian dollar services due to a decision made by its third-party payments provider.
The exchange immediately halted deposits via bank transfer, while withdrawals utilizing the PayID service will remain available until June 1 at 5 pm local time.
Users have been cautioned that any remaining Australian dollars on the exchange after May 31 will be automatically converted into USDT (Tether).
Impacted BTC Prices
The recent announcements have triggered a rush to cash out, resulting in heavily discounted BTC prices. Presently, Bitcoin can be acquired for as low as 33,750 Australian dollars, equivalent to approximately $21,987, representing a 21% reduction compared to the global spot rate.
Challenges in Acquiring Discounted BTC
Prospective buyers seeking to capitalize on the reduced Bitcoin prices may encounter obstacles. The inability to deposit Australian dollars into the trading wallet, coupled with substantial premiums for converting alternative cryptocurrencies into Australian dollars, may hinder users from acquiring the discounted BTC.
Delisting of Crypto Trading Pairs and Risk Awareness
Binance has alerted its users to the impending delisting of multiple crypto trading pairs with Australian dollars scheduled for June 1. Additionally, users are advised to exercise caution and remain vigilant about potential risks associated with trading.
The exchange continues its search for an alternate payment provider to facilitate Australian dollar deposits and withdrawals. At present, users can still buy and sell cryptocurrencies using credit or debit cards, with rates in line with the market.
Regulatory Challenges and Investigations
Binance has faced regulatory scrutiny in Australia, as its derivatives license was revoked by the Australian Securities and Investments Commission last month. Furthermore, the exchange is undergoing a significant investigation by the U.S. Commodities and Futures Trading Commission.
