The price of bitcoin dropped significantly by almost $6000 on Binance Australia, a significant crypto exchange on May 30. Trading activity indicated a strong willingness to sell, driving the price of bitcoin on Binance Australia down to $22,000 from $28,000 on the local exchange, BTC Markets. Market watchers have taken notice of this dramatic price discrepancy.
Bitcoin prices plummet on Binance Australia, triggering trader panic
In an indication that users were looking to exit their positions immediately, bitcoin prices on Binance’s Australian branch, a major crypto exchange, were about $6000 lower on May 30.
The cost of bitcoin, the most popular crypto in the world, was about $22,000 on Binance Australia compared to $28,000 on the Australian crypto exchange BTC Markets. The price of one bitcoin was $27,790 outside of Australia.
Around the world, the crypto exchange has been up against legal actions and investigations. The corporation announced in April that it would shut down its Australian derivatives division after giving up its financial services license after investigating its business practices.
Buyers can buy one bitcoin on the Australian platform for the equivalent of $22,000 in Australian dollars. The difficulty, though, is getting the money to the platform to make the transaction.
The crypto exchange’s Australian branch announced on May 18 that it would halt its Australian dollar services. This was after a decision made by its third-party payments provider.
Binance alerts Australian customers on AUD conversion deadline
After bank transfer deposits were stopped, Binance Australia permitted PayID withdrawals until June 1 at 5 p.m. local time. According to the report, the exchange cautioned its Australian customers that any Australian dollars (AUD) still present on the system after May 31 would be immediately converted into USDT (Tether). This alert advises users to manage their AUD holdings before the deadline to prevent automatic conversion. As the cutoff for AUD bank withdrawals draws near, traders scramble to convert their bitcoin holdings into Australian dollars.
Users may need help accessing the reduced BTC due to the inability to deposit Australian dollars (AUD) into the trading wallet and the significant surcharges involved with converting other crypto assets into AUD. Users trying to take advantage of the opportunity provided by the reduced bitcoin prices on Binance Australia need help with these circumstances.
Additionally, the crypto exchange has warned users about the delisting of many crypto trading pairs against Australian dollars (AUD) that will take place on June 1. Users have been urged to trade cautiously and know the risks involved.
In the interim, the exchange has stated that it is still looking for a replacement partner to maintain the availability of Australian dollar deposits and withdrawals on the platform. It is still possible to buy and sell cryptocurrencies using credit or debit cards, with prices that closely follow the market.
The U.S. Commodities and Futures Trading Commission (CFTC) is also looking into the exchange. Despite these events, Australian cryptocurrency broker Swyftx, which depended on the crypto exchange for liquidity, has declared that the exchange’s suspension of the Australian dollar on/off-ramps won’t impact Swyftx operations.
Binance’s license revoked by Australian regulator
According to a report from CNBC, the Australian Securities and Investments Commission announced on April 6 that Binance’s derivatives license had been revoked at the cryptocurrency exchange’s request. The regulator had started a targeted review of Binance in February.
According to the regulation, the crypto exchange was asked to shut down all open trading positions by April 21. ASIC Chair Joe Longo, focusing on identifying potential consumer harm, said the investigation into Binance’s practices was ongoing. A spokesman from Binance has disclosed that the company will adopt a more focused strategy in Australia, which includes shutting down its Binance Australia Derivatives business, in response to recent conversations with ASIC. It was revealed that this specific company had over 100 customers that traded derivatives.
Over the past few weeks and months, Binance has come under increasing regulatory scrutiny. The detailed lawsuit filed against the cryptocurrency exchange and its creator, Changpeng Zhao, by the U.S. Commodity Futures Trading Commission centres on anti-money laundering and know-your-customer compliance issues. The complaint described how Binance received incredibly lucrative fees from derivatives trading.
The Australian regulatory investigation was the result of an ostensibly accidental compliance problem. Utilizing a vast network of subsidiaries, including Oztures Trading Pty Ltd in Australia, Binance conducts business worldwide.
