Australian investors can buy one Bitcoin for the equivalent of $22,000 on Binance Australia, but the challenge is getting the funds into their accounts.
Bitcoin prices have fallen by as much as 21% when traded against the Australian dollar on the Australian branch of the Binance cryptocurrency market.
Before the nearby banks halt their withdrawal services in a few days, traders are scrambling to exchange their bitcoin holdings into Australian dollars. This pressing need to withdraw money is probably a factor in the exchange’s price drop.
Due to a choice made by its third-party payments provider, Binance Australia announced the suspension of its Australian dollar services on May 18th. Deposit bank transfers were immediately stopped, although PayID withdrawals may still be made up to June 1 at 5:00 p.m. local time.
Australian dollars will be automatically converted into USDT (Tether), a stablecoin linked to the value of the US dollar, starting of May 31st. This information has been provided to customers by Binance Australia.
Significant Price Difference
At the time of publication, one Bitcoin could be purchased on Binance Australia for about 33,750 Australian dollars, or around $21,987. This cost is 21% less than the current spot price for Bitcoin around the world.
Users may run into difficulties buying Bitcoin at the discounted price due to the suspension of Australian dollar deposits and the fees connected with converting other cryptocurrencies into Australian dollars.
Implications for Traders and Market Participants
The limitations on withdrawals combined with the markdown in Bitcoin prices on Binance Australia demonstrate the effects of operational and regulatory choices on cryptocurrency exchanges and their customers. To decide wisely on their crypto holdings, traders and market players must negotiate these situations.
Binance has also warned of the delisting of several crypto trading pairs with Australian dollars on June 1 and for users to “pay attention to the risks when trading.”