Investors and traders at Binance Australia were surprised this Tuesday (30) to find that the price of Bitcoin on the world’s largest cryptocurrency exchange is 20% off compared to other exchanges.
The price difference suggests that Australians want to get rid of their bitcoins quickly.
According to Reuters, while Bitcoin traded for around A$34,000 on Binance Australia, its value on BTC Markets, an Australian cryptocurrency exchange, was around A$43,000. Already on other international exchanges, such as Bitfinex, bitcoin was quoted at around $27,800.
Why are Australians renouncing their bitcoins?
The price difference of Bitcoin on Australian Binance is directly related to issues facing the exchange and its banking services in the country.
In mid-July the westpacone of the largest Australian banks, has announced that it is banning its customers from transferring money to Binance, the world’s largest cryptocurrency exchange.
In response to the ban, Binance has announced that it will no longer be able to accept payments in Australian dollars due to a decision by the company’s third-party payment provider.
The direct result of this move was a decrease in the liquidity of the Australian Dollar (AUD) trading pairs, which affected bitcoin prices on Binance Australia.
According to a company spokesperson, the recent removal of integration services with the traditional financial system by the payment processor’s banking partner has resulted in many Australian users withdrawing their funds from the platform ahead of the services’ closure, scheduled for June 1st.
Bitcoin20% discount
With less liquidity available, traders struggled to find buyers willing to pay higher prices, resulting in price drops.
In addition to banking issues, Binance has faced regulatory issues and investigations in Australia.
The company recently relinquished a financial services license in Australia amid a regulatory investigation, which led to the closure of its derivatives business in the country.
Binance is recognized as the largest cryptocurrency exchange in the world, accounting for a significant share of global volume.
However, the expansion of the business and the increasing demand for traditional banking services presented a challenge. Obtaining bank accounts for their smaller units has proven difficult as many major banks are wary of dealing with cryptocurrency companies due to concerns about where the money is coming from.
Binance said it continues to look for solutions to overcome these obstacles and ensure that its operations continue efficiently and in compliance with applicable regulations.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
