Bitcoin Trades at $5K Discount on Binance Australia as Withdrawal Closure Approaches

On Tuesday, the prices of bitcoin and other crypto assets were seen trading at a discount on the Australian arm of Binance, the world’s largest crypto exchange by trading volume, compared to rival local platforms.

As of 1:10 pm, bitcoin (BTC) was trading at A$34,863 ($22,670) on Binance Australia, about A$7,516 ($4,913) lower than the average price on most exchanges, including BTC Markets, where it was trading at A$43,000 ($28,130), Coinjar and Independent Reserve. Other assets like Ether (ETH) and Solana (SOL) also traded at about 20% discounts.

Bitcoin Trades at a Discount in Binance Australia

The discounts on crypto prices on Aussie exchanges could be attributed to users trying to exit their positions quickly to avoid being cut off from a local withdrawal route scheduled to cease soon.

Earlier this month, Binance Australia informed its users that they would be unable to withdraw fiat to their bank accounts using the Australian PayID service, a popular payment method, from 5 pm on June 1, 2023. The exchange said the halt was due to a decision made by its third-party payment service provider and that it was searching for an alternative.

On the same day of the announcement, Australian big four bank Westpac banned its customers from transacting with all crypto exchanges, including Binance Australia. Westpac revealed that the ban is part of a trial aimed at clamping down on scams and saving the millions lost to such fraudulent activities. Analysis conducted by the bank found that a third of all scam payments were directly moved to crypto exchanges, hence the decision.

Binance Australia Faces Challenges

Binance Australia has faced many challenges in recent times. Last month, the crypto exchange wound down its Aussie derivatives business due to regulatory issues with the Australian Securities and Investments Commission (ASIC). The agency canceled the exchange’s license as it reviewed its local operations.

Meanwhile, a Binance Australia spokesperson said that after June 1, users could convert their Australian dollar balances into Tether USD (USDT) to facilitate trading activities until the exchange finds a provider to continue offering deposits and withdrawals.