Australia-based users of Binance, the largest cryptocurrency exchange in the world, have been selling their Bitcoin holdings at a significant discount, with prices on the site dropping to around A$9,000 below those on competing exchanges. This happened after the exchange lost its banking partners and came under regulatory investigation, which caused a surge of Australian prospects to leave.
Earlier this month, Binance disclosed that it will no longer support Australian Dollar bank transfers via PayID. This change prompted many customers to attempt to cash out their holdings as soon as possible. As a result, Bitcoin’s value on Binance Australia decreased to around A$34,000 ($23,062.20), compared to A$43,000 on BTC Markets, a local rival. Outside of Australia, the price of one bitcoin was $27,790.
Binance faced further difficulties as a result of the Australian Securities and Investments Commission (ASIC) looking into its derivatives business. This motion was brought about by a mistake made by Binance, which resulted in the incorrect designation of 500 users as “wholesale buyers.” Their by-product positions had to be closed as a result of the error, which was required by local legislation for retailers.
After voluntarily giving up its license to provide financial services, Binance shut down its Australian derivatives business. However, the alternative recognized that Australians using its spot substitute solution wouldn’t be impacted by the closure.
In order to continue offering deposits and withdrawals in Australian Greenback, Binance is now looking for new providers. While PayID transfers are no longer possible, Australian consumers may still make cryptocurrency purchases using their credit or debit cards, and Binance’s P2P market is still operational.
Nevertheless, Binance’s global regulatory challenges are reflected in the situation in Australia. It is now defending itself against legal lawsuits and investigations in a number of jurisdictions, including the UK, Japan, Italy, and Singapore, where it is subject to legal action from the US Commodity Futures Buying and selling Commission.