BTC

Bitcoin Plunges 20% on Binance Australia Amidst User Exodus

by BSC News

May 30, 2023

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The discount can be attributed to the recent removal of fiat on-ramp services by Binance Australia's payment processor's banking partner.

Binance Australia in Turmoil

Bitcoin prices on Binance Australia have plunged to a 20% discount compared to rival exchanges, according to btcmarkets. This significant price difference indicates that customers are rushing to exit their positions on the platform.

The price of Bitcoin on Binance Australia on May 31 was approximately A$34,000 ($23,062), while on BTC Markets, an Australia-based cryptocurrency exchange, it was around A$43,000. This discrepancy highlights the growing desire among users to liquidate their holdings swiftly.

Binance spokesperson, in a recent statement to Reuters, acknowledged the situation, stating, "Due to the recent removal of fiat on-ramp services by our payment processor's banking partner, some Australian users have been withdrawing their AUD holdings from the platform before the off-ramp closure on 1 June." 

This removal of services has reduced liquidity for AUD pairs, ultimately impacting their pricing. In response, Binance will be delisting the remaining AUD pairs in line with the closure of fiat off-ramp services.

The Australian unit of Binance announced earlier this month that certain customers would not be able to deposit or withdraw funds following the termination of a third-party service provider. Further, Binance decided to close its Australian derivatives operation in April after surrendering its financial services license in the wake of a regulatory investigation.

The repercussions of these developments have become evident in trading volumes. According to CCData, daily trading volumes for the BTC/AUD pair on Binance dropped from 12,293,856.55 on May 18 to a mere 912,297.20 on May 20, just before the official announcement.

As the crypto industry faces increasing scrutiny from regulators worldwide, Binance's recent challenges in Australia highlight the evolving landscape and its impact on both the exchange and its users. 

What is Binance:

Binance positions itself as the world’s leading blockchain ecosystem and crypto-asset infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. The Binance platform aims to increase the freedom of money for users and features a comprehensive portfolio of crypto-asset products and offerings, including trading and finance, education, data and research, social good, investment and incubation, decentralization, and infrastructure solutions.

Where to find Binance:

Website | Twitter | Discord | Telegram |

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