The price of Bitcoin is on sale at Binance Australia, while other exchanges are trading the currency above 42,000 Australian dollars (over 27,000 US dollars), which is the normal price in the market. The platform is selling the currency for just over 33,000 Australian dollars (approximately $21,000), but this has a logical reason.
The price of Bitcoin on the Australian subsidiary is at this level because the platform is facing serious liquidity problems after the banking payment partner stopped allowing deposits in Australian dollars on the exchange, causing many customers to use alternative means available on the platform to withdraw Australian dollars.
Customers are also withdrawing funds because the exchange announced that, due to the embarrassment caused by the banking partner, many trading pairs using AUD would be canceled on Binance Australia starting from June 1st. Additionally, all remaining Australian dollars will be converted to Tether USDT.
However, despite Bitcoin being traded well below normal, users who want to, for example, engage in arbitrage will not profit much because Binance Australia will impose a premium on the value of Bitcoin for users who wish to buy the currency using other means on the platform. In other words, the price is only low when trading with AUD, but it is the same price when using other currencies.
Thus, Binance Exchange in Australia is facing serious liquidity problems with Australian dollars and, on the other hand, is facing investigation processes from various authorities seeking clarifications from the exchange. It is worth noting that one of the Australian regulators revoked the platform's license, closing another door for the exchange to operate in the territory.
In addition to this problem, a few weeks ago, the exchange had to withdraw from the Canadian market, claiming that there were not enough conditions to operate, largely due to new regulatory directives.
1. CZ words when confronted about investigations on Binance then removed on his Twitter account - source
To conclude, Binance Exchange in Australia is trading Bitcoin at a discount due to the issue with the fiat payment provider, and starting from the 1st of June, many other trading pairs using the Australian dollar will be a thing of the past, leading many customers to withdraw money from the platform using methods such as credit cards and others. To make matters worse, the exchange is facing issues with authorities like the FBI, DOJ, and others who are investigating various processes related to the exchange.
To conclude, it's Black Friday at Binance Australia, but there is no money for customers to buy using the Australian dollar. Now, how will the platform react to this? Is it the end of Binance in Australia? Leave your comments below, and let's discuss together.
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