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In a shocking turn, Australian Binance users are accepting a $6000 markdown to sell their bitcoin after Binance lost its banking partners.
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Facing regulatory challenges worldwide, Binance's troubles escalate as it halts all Australian dollar withdrawals, converting leftover funds into USDT.
In a shocking twist in the crypto world, Australian Binance users are selling their bitcoin with a $6,000 markdown! Let’s break down the dramatic chain of events that led to this.
🚨 The Australian @FinancialReview reports that Binance Australia is selling #Bitcoin $6,000 cheaper than other exchanges. 👇
— The Chainsaw (@chainsawdotcom) May 30, 2023
This comes amid #Binance's decision to stop facilitating AUD withdrawals on June 1. pic.twitter.com/JH2bXKgtLs
Banks Say ‘Bye-Bye’ to Binance
Binance’s banking partner, Cuscal, decided to cut ties with the crypto exchange over fraud worries. To make things worse, Westpac, one of Australia’s major banks, forbade its customers from making transfers to the exchange. This dramatic move leaves Binance, with its million-strong Aussie clientele, in a tough spot.
Binance’s Back up Plan
Here’s the twist: Binance is pulling the plug on all Australian dollar withdrawals.Any Aussie dollars lingering on the platform by Wednesday will be automatically turned into USDT, a crypto tied to the US dollar. Interestingly, Binance can’t use its own US dollar-backed stablecoin BUSD, as its issuer also decided to part ways with the platform earlier this year.
Aussie Customers Panic and Cash out!
Rather than moving their digital assets to another crypto exchange, many Australian investors are choosing to cash out on Binance. This sudden wave of sell-offs is putting downward pressure on bitcoin’s price. Case in point: on Tuesday, Binance was selling bitcoin for around $36,000, while local players BTC Markets, Independent Reserve and Bitpay offered the same for about $42,000.
Rough Journey for Binance
The journey has been stormy for Binance in Australia. Last month, it lost its derivatives licence and was hit with a lawsuit by the US Commodity Futures Trading Commission for allegedly running an illegal exchange and dodging US law.
Binance’s Worldwide worries
This Australia episode is just one of many regulatory hurdles Binance faces worldwide. The platform had to stop operations in Canada after new crypto exchange guidelines were introduced. With the collapse of rival FTX and over $1 trillion wiped off the crypto industry’s value last year, it’s clear regulators worldwide are setting their sights on this digital frontier.