Bitcoin price and other cryptocurrencies are trading at a significant discount on Binance Australia. Binance’s Australian arm put the BTC price up for sale at $22,000 today.
Binance Australia blames AUD liquidity drop for Bitcoin price cut
BTC price traded at a discount of up to $22,345 on Binance Australia today. Meanwhile, several Australian traders have taken advantage of the huge arbitrage opportunities available at the discount. For comparison, BTC price is trading around $28,000 on global exchanges. Binance Australia blames the reduced liquidity in Australian dollar (AUD) pairs for this price cut.
A Binance spokesperson revealed that some users are withdrawing their AUD holdings from the platform in anticipation that the platform will suspend AUD withdrawal services on June 1. As a result, bitcoin and AUD pairs are trading at lower-than-normal prices amid dwindling liquidity.
The data shows that at the time of writing, Bitcoin was trading at AUD 34,250 ($22,345) on Binance Australia. Meanwhile, other exchanges such as IndependentReserve, Luno, and Kraken were pricing BTC at $27,401. The scissors opened with decreasing liquidity provided an important opportunity for arbitrage opportunities.
By the way, the discount wasn’t just for Bitcoin. The data shows that Ethereum (ETH) is also trading at AUD 2,375 ($1,553) on Binance Australia. At the same time, other exchanges were selling 1 ETH at a price of $ 2,900.
Binance withdraws from Australia
Ahead of the week’s price cut, on May 26, Binance decided to delist a long list of trading pairs, including high-volume coins such as BTC, DOGE, MATIC. As we conveyed as Kriptokoin.com, the delist will take place on June 1st. The emergence of history has caused investors to move away from the stock market, thus causing liquidity to bottom out.
On May 18, Binance Australia said it is no longer able to process Australian Dollar (AUD) deposits for users because third-party payment service provider Cuscal has stopped providing services to the company.
Fellow Binancians,
We regret to inform you that with immediate effect we are unable to facilitate PayID AUD deposits for Binance users due to a decision made by our third party payment service provider. We understand from our third party payment service provider that Bank…
— Binance Australia (@Binance_AUS) May 18, 2023
On the same day, Westpac, Australia’s oldest bank, banned crypto transactions to anonymous exchanges.
In response to these issues, Binance Australia has begun to gradually restrict its users’ spot trading activities with AUD. On May 26, the exchange announced that it would cease Bitcoin spot trading activities with fiat currency on June 1. Meanwhile, Binance has suggested that users can continue to buy and sell affected coins on other trading pairs on its platform.
Problem on multiple fronts
Meanwhile, Binance and its CEO, CZ, are also facing new lawsuits from the US. Most notably, the market manipulation lawsuit by the Commodity Futures Trading Commission (CFTC). The lawsuit, filed in March, alleges that Binance operates an illegal exchange and violates the law.
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