Binance Australia Sells Bitcoin $6,000 Cheaper Than Other Exchanges

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As of Tuesday morning, Binance was selling one bitcoin for around $36,000, while local players BTC Markets, Independent Reserve, and Bitpay were selling one bitcoin for around $42,000. The gap was as wide as $14,000 last Friday and as high as $9,000 Monday night.

ASIC moves

Binance has faced an increasingly challenging operating environment in Australia this year.

Last month, Binance Australias derivatives license was canceled by the Australian regulator which was investigating the operations of the Dubai-based exchange.

Binance has asked the Australian Securities and Investments Commission to rescind the license, which regulators chairman Joe Longo suggested may have been because ASIC had planned an additional commitment.

Binance is also facing legal action from the US Commodity Futures Trading Commission, which sued the exchange earlier this year, along with its chief executive Changpeng Zhao.

The regulator alleges Mr. Zhao and another executive were operating an illegal exchange and fake compliance program. The lawsuit also alleges that Binance deliberately evaded US law by soliciting US customers for its derivatives business.

Brisbane-based crypto broker Swyftx has long used Binance to facilitate the bulk of its liquidity for its 600,000 customers. But a spokesperson said Binance’s inability to facilitate Australian dollar withdrawals would not affect Swyftx’s operations.

He said the clients deposited Australian dollars with the broker, who then converted them to US dollars before exchanging them for bitcoin using Binances’ international services, not local services.

We offered a [Australian dollar] onramp before Binance Australia hits the market and it will continue, the spokesperson said.

Local crypto exchange Independent Reserve draws its liquidity from its own platform, connecting traders with each other rather than buying assets through a third party.

Binance is fighting regulatory fires around the world. It was forced to cease operations in Canada earlier this month after the country issued a series of new guidelines for cryptocurrency exchanges, including investor limits and mandatory registrations.

While Binance is the most high-profile exchange, the entire industry has been in the crosshairs of regulators around the world, especially since the collapse of rival FTX in November, which sparked a rout of investors. digital parts.

More than $1 trillion was wiped from the market value of the industry last year, and lawmakers and securities regulators are demanding stricter guidelines for disclosures about how crypto companies operate and hold customer funds.

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