Bitcoin price lower on Binance Australia due to fiat ramp closure
Bitcoin (BTC) is being sold at a low price on the Australian branch of Binance cryptocurrency exchange, with BTC’s price down by as much as 21% against the Australian dollar.
This is due to traders rushing to convert their cryptocurrency holdings into Australian dollars before the local bank withdrawals close in a few days.
Binance Australia informed users on May 18 that it is suspending Australian dollar services after a decision by its third-party payments provider.
Deposits via bank transfer were immediately halted, while withdrawals using the PayID service will remain open until 5 pm local time on June 1. The exchange has warned its Australian clients that any Australian dollars remaining on the exchange after May 31 will be automatically converted into USDT.
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The announcement has caused a rush to convert and cash out, causing BTC prices to be heavily discounted.
At the time of publication, one BTC can be purchased for only 33,750 Australian dollars, equivalent to around $21,987, which is 21% lower than the global spot rate.
Those hoping to take advantage of the lower price of BTC 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 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. – Credit or debit card – Use P2P to buy and sell crypto – Third Party Payment Details: https://t.co/DSRhaebEfS pic.twitter.com/dQSKfJXYHK
— Binance Australia (@Binance_AUS) May 27, 2023
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Binance has been in trouble with regulators in Australia 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, had previously stated that the suspension of Binance’s Australian dollar on/off-ramps would not affect its own operations.
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