Customers of Binance Australia were trading bitcoin and other cryptocurrencies at lower prices than those on other platforms on Tuesday. The discount is apparently due to a popular Australian payment service preparing to cut off the crypto exchange from withdrawals in local currency.
Bitcoin Trading at Lower Rates on Binance Australia
Australians traded bitcoin (BTC) and other cryptocurrencies at discount on Binance Australia compared to other exchanges operating in the country on Tuesday. The price difference has been attributed to a popular domestic payment provider’s decision to quit processing withdrawals in Australian dollars (AUD) for its users.
Starting from June 1, customers of Binance’s Australian platform will not be able to withdraw amounts in the national fiat to their bank accounts through the Payid service. The exchange’s announcement came after earlier this month it informed traders that they will not be able to deposit or withdraw AUD through another Australian payment gateway, Cuscal.
As a result, BTC was selling below 35,000 AUD (less than $23,000) after noon, Singapore time, on May 30, Bloomberg reported, citing data from Cryptocompare. That’s approximately 7,500 AUD lower than the average registered on other exchanges such as Independent Reserve and Coinjar.
The price of bitcoin, the crypto with the largest market cap, was at around 34,000 Australian dollars on Binance Australia compared with 43,000 AUD on the Australia-based cryptocurrency exchange BTC Markets, Reuters also noted.
Binance Suggests Stablecoin Option to Aussie Traders
On Tuesday, a spokesperson for Binance Australia said that AUD balances could be converted into tether (USDT), the U.S. dollar-pegged stablecoin, in order to “facilitate withdrawals and trading activities” after June 1. The representative also emphasized:
We are working hard to find an alternative provider to continue offering AUD deposits and withdrawals to our users.
The latest negative development for Binance’s Australian arm comes amid increased regulatory scrutiny on the activities of the world’s largest digital asset exchange by daily trading volume, including probes in the U.S. into its compliance with anti-money laundering rules and alleged Russia sanctions violations.
In April, the Australian Securities and Investments Commission (ASIC) canceled the license issued to Binance for its derivatives business in the country. The regulator has been reviewing the crypto company’s operations in Australia.
Do you think Binance Australia will find other payment service providers to process AUD deposits and withdrawals? Tell us in the comments section below.
