Bitcoin Gets A 18% Discount in Australia• May 30, 2023 11:34 am • Comments
It looks like Bitcoin now has a massive 18% discount in Austrailia according to the prices on Binance’s Australian platform which some investors could take advantage of.
BTC was trading at around $23K which is much lower than the overall market price of around $27K.
The reason for this sudden discount is due to the fact that Binance has recently removed the fiat on-ramp services by its payment processor’s banking partner.
Due to this, AUD crypto pairs had a lot less liquidity and provided a very significant arbitrage opportunity for crypto traders.
However, it was still difficult as one would need Australian dollars in order to take advantage of this price difference.
Full story 👇https://t.co/SK8DjS4xan
— CryptoSavingExpert ® (@CryptoSavingExp) May 30, 2023
“As a result, AUD pairs have experienced less liquidity which has impacted their pricing.
We will be delisting remaining AUD pairs in line with the closure of fiat off-ramp services,” said the spokesperson. “We remain focused on securing additional fiat relationships to service our users.”
While the discounted Bitcoin on Binance’s Australian platform appears as an attractive arbitrage opportunity, users still face several significant hurdles.
The platform has, for example, stopped accepting deposits in Australian dollars, and converting other cryptocurrencies into Australian dollars now involves substantial premiums.
Binance has shared that the exchange plans to delist more AUD pairs in the future starting on June 1 which will decrease the number of options for users in Australia.
The company is reportedly looking at a new provider in order to allow for the withdrawal and depositing of AUD again as this has been put on pause.
So far, it seems that Binance is still operating in many regions around the world where regulations are favorable for the business.
Unfortunately, there are also some regions where the company has recently discontinued support for due to unfavorable regulatory environments towards crypto.
Bitcoin and other digital tokens were trading at a discount on Binance Australia versus rival exchanges in the country with the platform set to be cut off from a key local currency withdrawal route https://t.co/PjBlCjZnes
— Bloomberg Crypto (@crypto) May 30, 2023
Meanwhile, Binance said it is continuing to look for an alternate provider to continue offering Australian dollar deposits and withdrawals.
Currently, the ability to buy and sell crypto using credit or debit cards is still available, though these rates appear to be in line with the market.
Binance has been in hot water with regulators down under as its derivatives license was canceled by the Australian Securities and Investments Commission last month. It is also facing a massive investigation by the U.S. Commodities and Futures Trading Commission.
Aussie crypto broker Swyftx, which relied on Binance for its liquidity needs, h previously stated that the severing of Binance’s Australian dollar on/off-ramps would not affect its own operations.
— Root_Shaw (@RootShaw31) May 30, 2023
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