Bitcoin is trading at a $5,000 discount on Binance Australia as withdrawal closes nearer

On Tuesday, prices for bitcoin and other crypto assets on the Australian arm of Binance, the world’s largest crypto exchange by trading volume, traded at a discount compared to competing local platforms.

As of 1:10 p.m., Bitcoin (BTC) was trading at AUD 34,863 (USD 22,670). Binance Australia, approximately A$7,516 ($4,913) lower than the average price on most exchanges, inclusive BTC Markets, where it traded at A$43,000 ($28,130), Coinjar and Independent Reserve. Other assets like Ether (ETH) and Solana (SOL) were also trading at a discount of around 20%.

Bitcoin is traded at a discount on Binance Australia

The discounts on crypto prices on Australian exchanges could be due to users trying to quickly exit their positions to avoid being cut off from a local withdrawal route that is set to be discontinued soon.

Earlier this month, Binance Australia informed informed its users that as of June 1, 2023, 5:00 p.m., they will no longer be able to withdraw fiat currencies to their bank accounts via the Australian PayID service, a popular payment service provider and was looking for an alternative .

On the same day of the announcement, Australian Big Four bank Westpac reported forbidden to ban its clients from trading on all crypto exchanges, including Binance Australia. Westpac announced the ban is part of a process aimed at cracking down on fraud and salvaging the millions lost to such fraudulent activity. Analysis conducted by the bank revealed that a third of all fraudulent payments were routed directly to crypto exchanges, hence the decision.

Binance Australia faces challenges

Binance Australia has faced many challenges lately. Last month, the crypto exchange settled its Australian derivatives business due to regulatory issues with the Australian Securities and Investments Commission (ASIC). The agency revoked the exchange’s license when it reviewed its local operations.

Meanwhile, a spokesman 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 provider that will continue to offer deposits and withdrawals.

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