Binance Australia customers found themselves trading Bitcoin and other cryptocurrencies at discounted prices compared to other local platforms on Tuesday. The price discrepancy is reportedly a result of a prominent Australian payment service preparing to sever ties with the crypto exchange, thereby halting AUD withdrawals.
The discount became apparent as Australians engaged in Bitcoin trading on Binance Australia at lower rates compared to exchanges operating within the country. This divergence in prices is attributed to a domestic payment provider’s decision to cease processing AUD withdrawals for its users, starting from June 1.
Binance Australia had previously notified traders that AUD deposits and withdrawals would no longer be possible through another Australian payment gateway, Cuscal. The forthcoming halt in AUD withdrawals via the Payid service compounds the challenges faced by Binance Australia users.
According to Bloomberg, BTC was being sold at just under 35,000 AUD (less than $23,000) after noon Singapore time on May 30. This figure reflects a reduction of approximately 7,500 AUD compared to the average rate on exchanges such as Independent Reserve and Coinjar.
The disparity in Bitcoin prices is evident, with Binance Australia offering BTC at around 34,000 AUD, while the Australia-based exchange BTC Markets quoted 43,000 AUD, as noted by Reuters.
To address the impending withdrawal challenges, Binance Australia suggested that customers convert their AUD balances into tether (USDT), a stablecoin pegged to the U.S. dollar. This would allow for easier withdrawals and trading activities after June 1. Binance Australia’s spokesperson also expressed their commitment to finding an alternative provider to restore AUD deposit and withdrawal services for users.
These recent developments present further obstacles for Binance Australia, occurring amid heightened regulatory scrutiny faced by the world’s largest digital asset exchange. Investigations into its compliance with anti-money laundering regulations and allegations of Russia sanctions violations in the U.S. have compounded the challenges faced by the platform.