2023-05-30 18:20:10
© Reuters. Bitcoin is traded at a discount of R $ 30,000 in Australia: understand
CriptoFácil – The price of (BTC) at the time of this writing is approximately $141,000, according to CoinGecko. But in Australia, users can buy the cryptocurrency for the equivalent of around R$110,000.
This is because, according to Reuters, the price of Bitcoin (BTC) on the Australian branch of Binance is trading at a steep discount. The report shows that on Tuesday (30), the price of BTC was almost A$9,000 below the price on rival exchanges.
That is, 9,000 Australian dollars, where A$ 1 is worth R$ 3.28 at the current exchange rate. Therefore, the Bitcoin discount in Australia is approximately R$30,000.
But what motivated such a sharp drop in the BTC price on Kangaroo Island? By all indications, fear of regulation made Australians dump their cryptocurrencies. Soon, the price of BTC fell sharply in the country.
Bitcoin Sell Race
It seems that Binance Australia users were in a hurry to get out of their positions. The BTC price on the platform was trading around A$34,000 ($23,062.20). At the same time, its price on other Australian exchanges was A$43,000.
Binance faced issues in Australia when a third-party service provider disrupted its services, resulting in limited deposit and withdrawal options for some customers. In fact, a problem similar to what happened in Brazil when the exchange ended its partnership with Capitual.
The company’s regulatory challenges around the world led to the closure of its Australian derivatives business. As a result, Binance also had to relinquish its financial services license.
Amidst a decision made by a third-party payment service provider earlier this month, Binance had to make trust deposits in AUD. Last week, Binance made the decision to discontinue AUD trading pairs for cryptocurrencies including BTC, Ether(), (DOGE) and other cryptocurrencies.
As a result, customers of the exchange began to unload their positions within Binance Australia, which led to the price of BTC falling. Apparently, customers sold their positions to buy back on other exchanges, which explains the difference in prices.
Binance and regulatory challenges
Binance faces major regulatory challenges in Australia, as well as other global jurisdictions. In Australia, the local financial regulator (ASIC) has launched an investigation against the exchange. The investigation was related to the incorrect classification of traders as retail investors. That is, like ordinary investors.
Amidst the regulatory crackdown, trading volumes on Binance Australia have also dropped considerably. The recent price action on Binance Australia indicates that investors want to get out quickly before any other major regulatory action.
Binance is currently under investigation by regulatory authorities. The Futures and Commodities Trading Commission (CFTC) has filed legal action against Changpeng Zhao (CZ), CEO of Binance and three associated entities. They are accused of breaking the law and CFTC regulations.
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