Bitcoin prices have dropped by 20% when traded against the Australian dollar on Binance Australia. The platform users are reportedly converting their cryptocurrency holdings into Australian dollars because of fears that the withdrawal window for nearby banks may close in a few days, preventing users from accessing their funds.
Binance Australia informed its users on May 18, 2023, that it will discontinue its Australian dollar services due to issues with its third-party payment provider. As a result, bank transfer deposits were abruptly halted. However, withdrawals via PayID will continue to be accepted until June 1, 2023, at 5 p.m. local time, according to the latest information from Binance Australia.
Binance is suspending AUD fiat services in Australia.
Got this email this morning.
Very disappointing as it was one of my favourite on/off ramps.
Chokepoint is real.. pic.twitter.com/ZYiWY3aO0C
— Miles Deutscher (@milesdeutscher) May 18, 2023
Additionally, the exchange informed its Australian clients that any remaining Australian dollars (AUD) in their accounts by May 31, 2023, will be converted into USDT. The company also expressed its intention to find an alternative vendor that will enable continued deposits and withdrawals in Australian dollars.
The announcements triggered a rush among users to liquidate their holdings, leading to a significant decrease in the price of Bitcoin (BTC). At press time, one BTC is valued at only 33,750 Australian dollars (AUD), approximately $21,987, representing a decline of over 20% compared to the global spot price.
However, users from other regions looking to take advantage of the lower Bitcoin prices may face obstacles. It appears the discounted price can only be accessed with Australian dollars. Users who are unable to deposit Australian dollars into their trading wallet may need to pay high fees to convert other crypto assets into Australian dollars.
The Australian Securities and Investments Commission (ASIC) recently concluded an investigation into Binance’s operations in Australia. This inquiry focused on how the exchange categorized its clients; as wholesale or retail investors. It was prompted by the closure of derivatives positions belonging to 500 users mistakenly classified as wholesale investors by Binance.
After the investigation, ASIC revoked the license of Oztures Trading Pty Ltd; the company that operated Binance Australia’s Derivatives Services. Consequently, customers of Binance Australia Derivatives were no longer be able to increase their derivatives holdings or initiate new positions on the platform since April 14, 2023, due to the license termination.
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