financemagnates.com
Australian investors' concerns about the future of their positions have led to Bitcoins (BTC) on Binance Australia being sold at a significant discount compared to competing platforms operating in the country. According to Tuesday's data, a single BTC on Australian Binance costs even AUD 9,000 less than on the BTC Markets, another locally operated crypto exchange. Binance Australia offered AUD 34,000, while BTC Markets AUD 43,000.
Binance Australia Sells Bitcoins with Sizable Discount
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.
— Binance Australia (@Binance_AUS) May 22, 2023
We are working hard to find an alternative provider…
Furthermore, in April, Binance Australia announced that it would stop providing derivative instruments services after, due to an ongoing investigation into its operations, the exchange decided to renounce its local financial license.
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 hold 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 obtaining a license to provide cryptocurrency services in Thailand.