18% Bitcoin Discount Appears on Binance Australia as Exchange Cuts Ramp Services

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Vegemite discount?

Bitcoin (BTC) is currently experiencing a steep discount on Binance’s Australian platform.

As of today, the cryptocurrency is listed at a hefty 20% discount from its usual price, with one BTC trading for around AUD$35,875, or roughly $23,457.

This value contrasts with the average Bitcoin price on different exchanges, which stands at around AUD$42,500, according to CryptoCompare.

Due to the recent removal of on-ramp fiat services by our payment processor banking partner, some Australian users withdrew their AUD holdings from the platform before the on-ramp closed on June 1, a report said. Binance spokesperson at Decrypt.

The ramp removal was first shared with users on May 18. At that time, Binance informed its users that any remaining Australian dollars on the platform will be automatically converted to stablecoin Tether (USDT) after May 31.

As a result, AUD pairs experienced less liquidity, which impacted their pricing. We will delist the remaining AUD pairs in line with the shutdown of fiat exit services, the spokesperson said. We remain focused on securing additional fiat relationships to serve our users.

While discounted Bitcoin on Binance’s Australian platform appears to be 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.

On top of that, Binance announced plans to drop several Australian dollar trading pairs on June 1.

This move is expected to add another layer of complexity to its users’ trading experience.

Amid these challenges, Binance is actively looking for another provider to restore the ability to deposit and withdraw Australian dollars. Meanwhile, users can still buy and sell cryptocurrencies using credit or debit cards. The rates for these transactions are currently in line with the market.

The story continues

Binance under fire

As Binance grapples with increasing regulatory scrutiny, its challenges continue to escalate.

After the exchange filed for cancellation, the Australian Securities and Investments Commission recently revoked its derivatives license.

Binance denies mixing ‘billions’ in customer funds

The world’s largest crypto exchange is also under investigation by at least four different US government agencies, including the SEC, DOJ, IRS, and most recently, the CFTC.

The charges here range from violation of derivatives trading rules and tax offenses.

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