Australian
investors’ concerns about the future of their positions have led to Bitcoin
(BTC) on Binance Australia being sold at a significant discount compared to
competing platforms operating in the country. According to data released on Tuesday, a
single BTC on Australian Binance costs AUD 9,000 less than on the BTC
Markets, another locally operated crypto exchange . Binance Australia offered BTC at AUD
34,000, while BTC Markets priced them at AUD 43,000.
Experts
believe such a large difference is due to the fact that earlier this month,
Binance informed its Australian consumers that they would not be able to
withdraw funds from the exchange and deposit new ones due to the cessation of
services by the third-party payment company.
On 18 May,
Binance Australia stated that deposits would be suspended immediately. Four
days later, information appeared that the final suspension of deposits and
withdrawals would take place from 1 June, which is this week.
“We are
working hard to find an alternative provider to continue offering AUD deposits
and withdrawals to our users,” Binance commented on social media.
UPDATE – We have confirmed with our local payment partner that our users can continue to withdraw AUD via bank transfer until 17:00 June 1, 2023 AEST. Users can still continue to buy and sell crypto via debit and credit card.
We are working hard to find an alternative provider…
— Binance Australia (@Binance_AUS) May 22, 2023
Furthermore,
in April, Binance Australia announced that it would stop providing derivative instruments services after the exchange decided to renounce its local financial license. There is currently an ongoing investigation into its
operations.
Binance sells Bitcoins with significant discount. Source: CoinMarketCap.com
Financial Institutions
Moving Away from BTC
Financial institutions and banks seem to be distancing themselves from
cryptocurrencies , at least in some jurisdictions. For example, Westpac, a large
banking institution, has banned its customers from making payments to Binance.
According to the bank, this move is aimed at protecting against fraud.
“Digital
exchanges have a legitimate role to play in the financial ecosystem. But, since
the rise of digital currency, we’ve noticed that scammers are increasingly
using overseas exchanges,” said Scott Collary, Westpac’s Group Executive
of Customer Services and Technology.
Moreover,
the American subsidiary of Binance is reportedly struggling with financial
problems after the collapse of its two banking partners, Signature Bank and
Silvergate Bank. Although this has not been officially confirmed, the American
arm of the cryptocurrency exchange uses the services of at least one
intermediary bank to withhold cash deposits from cryptocurrency traders on the
platform.
Regulatory
pressure may cause Binance to leave the United States and relocate
its headquarters to the United Kingdom.
However,
Binance is trying to cope with local issues by looking for opportunities in
other jurisdictions. The exchange is returning to Japan, recently vacated by
Kraken and Coinbase, or will obtain a license to provide cryptocurrency
services in Thailand.
Australian
investors’ concerns about the future of their positions have led to Bitcoin
(BTC) on Binance Australia being sold at a significant discount compared to
competing platforms operating in the country. According to data released on Tuesday, a
single BTC on Australian Binance costs AUD 9,000 less than on the BTC
Markets, another locally operated crypto exchange . Binance Australia offered BTC at AUD
34,000, while BTC Markets priced them at AUD 43,000.
Experts
believe such a large difference is due to the fact that earlier this month,
Binance informed its Australian consumers that they would not be able to
withdraw funds from the exchange and deposit new ones due to the cessation of
services by the third-party payment company.
On 18 May,
Binance Australia stated that deposits would be suspended immediately. Four
days later, information appeared that the final suspension of deposits and
withdrawals would take place from 1 June, which is this week.
“We are
working hard to find an alternative provider to continue offering AUD deposits
and withdrawals to our users,” Binance commented on social media.
UPDATE – We have confirmed with our local payment partner that our users can continue to withdraw AUD via bank transfer until 17:00 June 1, 2023 AEST. Users can still continue to buy and sell crypto via debit and credit card.
We are working hard to find an alternative provider…
— Binance Australia (@Binance_AUS) May 22, 2023
Furthermore,
in April, Binance Australia announced that it would stop providing derivative instruments services after the exchange decided to renounce its local financial license. There is currently an ongoing investigation into its
operations.
Binance sells Bitcoins with significant discount. Source: CoinMarketCap.com
Financial Institutions
Moving Away from BTC
Financial institutions and banks seem to be distancing themselves from
cryptocurrencies , at least in some jurisdictions. For example, Westpac, a large
banking institution, has banned its customers from making payments to Binance.
According to the bank, this move is aimed at protecting against fraud.
“Digital
exchanges have a legitimate role to play in the financial ecosystem. But, since
the rise of digital currency, we’ve noticed that scammers are increasingly
using overseas exchanges,” said Scott Collary, Westpac’s Group Executive
of Customer Services and Technology.
Moreover,
the American subsidiary of Binance is reportedly struggling with financial
problems after the collapse of its two banking partners, Signature Bank and
Silvergate Bank. Although this has not been officially confirmed, the American
arm of the cryptocurrency exchange uses the services of at least one
intermediary bank to withhold cash deposits from cryptocurrency traders on the
platform.
Regulatory
pressure may cause Binance to leave the United States and relocate
its headquarters to the United Kingdom.
However,
Binance is trying to cope with local issues by looking for opportunities in
other jurisdictions. The exchange is returning to Japan, recently vacated by
Kraken and Coinbase, or will obtain a license to provide cryptocurrency
services in Thailand.
