Bitcoin Trades at 18% Discount on Binance Australia as Exchange Cuts On-Ramp

Vegemite discount?

Bitcoin (BTC) is currently experiencing a significant discount on Binance's Australian platform.

As of today, the cryptocurrency is listed at a steep 20% discount compared to its usual price, with one BTC trading for approximately $35,875 AUD, or roughly $23,457.

This value contrasts with the average Bitcoin price on different exchanges, which stands at roughly $42,500 AUD, according to CryptoCompare.

“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 in advance of the off-ramp closure on 1 June,” a Binance spokesperson told Decrypt.

The on-ramp’s removal was first shared with users on May 18. At that time, Binance advised its users that any remaining Australian dollars on the platform will be automatically converted into the stablecoin Tether (USDT) after May 31.

“As a result, AUD pairs have experienced less liquidity which has impacted their pricing. We will be delisting remaining AUD pairs in line with the closure of fiat off-ramp services,” said the spokesperson. “We remain focused on securing additional fiat relationships to service our users.”

While the discounted Bitcoin on Binance's Australian platform appears as an attractive arbitrage opportunity, users still face several significant hurdles.

The platform has, for example, stopped accepting deposits in Australian dollars, and converting other cryptocurrencies into Australian dollars now involves substantial premiums.

On top of that, Binance has announced plans to delist several trading pairs with the Australian dollar on June 1.

This move is expected to add another layer of complexity to the trading experience for its users.

Amid these challenges, Binance is actively searching for an alternate provider to restore the ability to deposit and withdraw Australian dollars. Meanwhile, users can still buy and sell cryptocurrencies using credit or debit cards. The rates for these transactions are currently in line with the market.

Binance under fire

As Binance grapples with increasing regulatory scrutiny, its challenges continue to mount.

After the exchange requested the cancellation, the Australian Securities and Investments Commission recently rescinded its derivatives license.

The world’s biggest crypto exchange is also currently the subject of investigations by at least four different U.S. government agencies, including the SEC, DOJ, IRS, and, most recently, the CFTC.

The charges here range from violating derivative trading rules and tax offenses.