Binance's bank transfer halt creates a discount on Bitcoin's price.
Binance Australia, the Australian arm of a popular cryptocurrency exchange, is witnessing an unusual scenario: Bitcoin (BTC) being traded at a significant markdown, as much as 21%, against the Australian dollar.
The rush to convert cryptocurrency to fiat currency was triggered by an announcement by Binance Australia on May 18th.
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The platform disclosed it was suspending its Australian dollar services in response to a decision by its third-party payments provider. Instantaneously, deposits via bank transfers were halted, with PayID withdrawals earmarked to cease after business hours on June 1st.
As a result of the sudden announcement, traders are clamoring to cash out their holdings, leading to a steep price drop in Bitcoin on the platform.
As of the latest update, one Bitcoin is available for just 33,750 Australian dollars, approximately $21,987, which is 21% lower than the global average rate. At the time of writing, Bitcoin (BTC) retails for $27,831.33, recording a 0.51% price decrease.
However, those hoping to exploit this unusual price anomaly may be out of luck. The absence of an Australian dollar deposit route coupled with high premiums for converting other cryptocurrencies into Australian dollars may limit their ability to acquire the discounted Bitcoin.
On a more optimistic note, Binance is searching for an alternative provider to continue facilitating Australian dollar transactions. The current provision to buy and sell cryptocurrency using credit or debit cards remains functional, with rates appearing to align with the broader market.
Binance's future in Australia seems uncertain following recent regulatory challenges. Last month, the Australian Securities and Investments Commission canceled its derivatives license, and the US Commodities and Futures Trading Commission initiated an extensive investigation into its operations.
Despite the unfortunate events, Binance is committed to finding solutions to continue serving its Australian users.