Traders are rushing to convert their cryptocurrency holdings into Australian dollars, leading to a significant sell-off on Binance Australia. The suspension of Australian dollar services on Binance Australia and the closure of local bank withdrawals have prompted users to sell their digital assets. This has resulted in Bitcoin prices trading at a significant discount.
On May 18, Binance Australia announced the suspension of its Australian dollar services due to a decision made by its third-party payments provider. This issue initiated the problem. Bank transfer deposits were subject to immediate restrictions, while PayID withdrawals had a deadline of June 1 at 5 p.m. local time. Any Australian dollars still in circulation on May 31 would immediately be changed into USDT, a stablecoin pegged to the US dollar.
Word of the planned suspension led users to hurriedly sell off their crypto assets. This resulted in a significant decline in the price of Bitcoin compared to the Australian dollar. Currently, traders can purchase one Bitcoin for around 33,750 Australian dollars, representing a significant 21% discount from the current spot pricing. The inability to deposit Australian dollars poses a challenge for consumers in acquiring discounted Bitcoin. Converting other cryptocurrencies into Australian dollars incurs hefty fees.
Additionally, Binance has issued cautions regarding the June 1 delisting of certain cryptocurrency trading pairings with the Australian dollar. When advising traders, it is important to urge users to exercise caution and carefully consider the risks involved. Currently, the option to buy and sell cryptocurrencies with credit or debit cards remains available at market rates. Binance is actively seeking an alternate source to restore Australian dollar deposits and withdrawals.
While AUD deposits by bank transfers are no longer available to Binance users in Australia, there are still several ways Aussie users can deposit onto the exchange.
– Credit or debit card
– Use P2P to buy and sell crypto
– Third Party Payment
— Binance Australia (@Binance_AUS) May 27, 2023
Recent regulatory difficulties for Binance have exacerbated the turmoil in its Australian operations. The Australian Securities and Investments Commission revoked Binance’s derivatives license last month, and the U.S. Commodities and Futures Trading Commission is now conducting a thorough inquiry into the exchange.
These changes affect more than just Binance Australia; they influence all market participants. Swyftx, an Australian cryptocurrency broker that relied on Binance for liquidity assistance, is one example of this. Even while Swyftx asserted that the removal of Binance’s Australian dollar on/off-ramps wouldn’t affect its business operations, the issue at Binance is still having wider effects.
Traders struggling to convert cryptocurrency to Australian dollars will closely monitor any future changes. They seek alternative options in the market.