Bitcoin BTC ($27,751) is trading at a high discount on the Australian branch of the crypto exchange Binance, and the price of Bitcoin drops up to 21% if the Australian dollar is sold.
The move comes as traders rush to cash out their crypto holdings in Australian dollars before local bank withdrawal doors close for the day. On May 18, Binance Australia informed users that it was suspending the Australian dollar service after the decision of another payment provider.
Direct bank deposits have been suspended, while withdrawals using the Pay ID service are expected to open until June 1 at 5 p.m. local time. The exchange also warned its customers that any Australian dollars left in the exchange after May 31 will be converted into USDT immediately.
The announcements have caused it to slowly fade away, leading to a significant drop in the price of BTC. At the time of the announcement, one BTC can be bought for only AU$33,750, which equates to approximately $21,987, which is 21% below the global spot rate.
Those hoping to cash in on cheap Bitcoin, however, may be disappointed. Without being able to put Australian dollars into a wallet and large amounts of money for converting other crypto assets into Australian dollars, users can try to get their hands on low-cost BTC.
Binance also warned against removing many crypto trading options in Australian dollars on June 1 and for users to “be aware of risks when trading.”
Meanwhile, Binance said it is continuing to look for a third-party provider to continue offering Australian dollar deposits and deposits. Currently, the ability to buy and sell crypto using a credit or debit card is still available, although these rates seem to be in line with the market.
Binance has been in hot water with regulators after the Australian Securities and Investments Agency revoked its trading license last month. It also faces extensive scrutiny from the US Commodities and Futures Trading Commission.
Australian crypto broker Swyftx, which relies on Binance for its financial needs, previously said that Binance’s Australian dollar off-ramp would not affect its own operations.
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