- Binance witnesses significant sell-off of Bitcoin by Australian customers.
- Binance faces regulatory scrutiny and loss of banking partners in Australia.
- Binance voluntarily surrenders financial services license in Australia.
Binance, the leading global cryptocurrency exchange, has witnessed a significant sell-off of Bitcoin by its Australian customers. The prices on the platform have plummeted to nearly A$9,000 below those on other exchanges, indicating a substantial discount. This trend follows the exchange’s recent loss of banking partners and regulatory scrutiny, which has triggered a rush among Australian customers to exit their positions.
In recent news, Binance discontinued using PayID for Australian Dollar bank transfers, resulting in a surge of customers seeking to liquidate their holdings. This sudden influx caused a dip in Bitcoin’s value on Binance Australia, with prices dropping to approximately A$34,000 ($23,062.20), in contrast to A$43,000 on local competitor BTC Markets. Meanwhile, Bitcoin’s global value was quoted at $27,790.
The Australian Securities and Investments Commission (ASIC) has presented Binance with a new hurdle to overcome as it reviews the exchange’s derivatives business. This development was triggered by an inadvertent error on Binance’s part, which resulted in the misidentification of 500 users as “wholesale investors.” Consequently, their derivative positions were closed, per local regulations that apply to retail traders. Binance must navigate this challenge with care and diligence to maintain its reputation as a reliable and compliant player in the cryptocurrency market.
Binance has voluntarily surrendered its financial services license in Australia, resulting in the closure of its derivatives business in the country. Despite this development, the exchange has assured its Australian users that the closure will not affect their ability to utilize its spot exchange product.
Binance actively seeks alternative solutions to ensure uninterrupted Australian Dollar deposits and withdrawals. Although PayID transfers are temporarily unavailable, our valued users in Australia can still engage in seamless crypto transactions via their credit or debit cards. Additionally, our P2P marketplace remains fully operational, providing a reliable platform for all your trading needs. Rest assured, Binance is committed to delivering exceptional service and support to our Australian community.
The regulatory challenges faced by Binance are not limited to Australia alone, as the company grapples with legal actions and investigations in various jurisdictions worldwide. From the UK to Japan, Italy to Singapore, Binance faces various regulatory hurdles, including legal action from the US Commodity Futures Trading Commission.
