Binance Australia blames AUD liquidity drop for Bitcoin discount

Please fol­low and like us:
Pin Share

Binance has cit­ed reduced liq­uid­i­ty in Aus­tralian Dol­lar (AUD) pairs as the cause for trad­ing dis­counts of Bit­coin (BTC) and oth­er dig­i­tal assets on its Aus­tralian plat­form, accord­ing to an emailed state­ment to CryptoSlate.

A spokesper­son for the cryp­to exchange explained that some users “have been with­draw­ing their AUD hold­ings from the plat­form in antic­i­pa­tion of the platform’s AUD with­draw­al ser­vices sus­pen­sion, referred to as “off-ramp clo­sure,” on June 1. Con­se­quent­ly, Bit­coin and oth­er dig­i­tal assets paired with the nation­al cur­ren­cy face reduced liq­uid­i­ty, affect­ing their prices.

The exchange added:

“We will be delist­ing [the] remain­ing AUD pairs in line with the clo­sure of fiat off-ramp ser­vices. We remain focused on secur­ing addi­tion­al fiat rela­tion­ships to ser­vice our users.”

Bitcoin, others trade at a discount

Mean­while, sev­er­al Aus­tralian cryp­to traders have iden­ti­fied the mas­sive arbi­trage oppor­tu­ni­ties avail­able from the discount.

Data from Cryp­to­Comapre shows that the flag­ship dig­i­tal asset was trad­ing at AUD $34,250 (USD $22,345) on Binance Aus­tralia as of press time. This is sig­nif­i­cant­ly low­er than what it is trad­ing on oth­er exchanges like Inde­pen­den­tRe­serve, Luno, and Krak­en, exchang­ing hands for over AUD $42,000 (USD $27,401).

Bitcoin Price Australia
Source: Cryp­to­Com­pare

The dis­count is also evi­dent on oth­er dig­i­tal assets like Ethereum (ETH). Ether is trad­ing at AUD $2,375 on Binance Aus­tralia, while it is over AUD $2,900 on rival exchanges, accord­ing to Cryp­to­Com­pare data.

Binance Australia’s banking woes

On May 18, Binance Aus­tralia said it could no longer process Aus­tralian Dol­lar (AUD) deposits for users because its third-par­ty pay­ment ser­vice provider Cus­cal stopped pro­vid­ing its ser­vices to the firm. On the same day, Australia’s old­est bank, West­pac, banned cryp­to trans­ac­tions to unnamed exchanges.

In response to these issues, Binance Aus­tralia start­ed grad­u­al­ly restrict­ing its users from spot trad­ing activ­i­ties with the AUD. On May 26, the exchange announced it would stop Bit­coin spot trad­ing activ­i­ties with the fiat cur­ren­cy on June 1.

Mean­while, the exchange has main­tained that users can con­tin­ue trad­ing the affect­ed assets on oth­er trad­ing pairs with­in its platform.

The post Binance Aus­tralia blames AUD liq­uid­i­ty drop for Bit­coin dis­count appeared first on Cryp­toSlate.



Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *