Binance has been embroiled in regulatory battles for some time now as its derivatives license was revoked by the Australian Securities and Investments Commission following a probe into its dealings.
Bitcoin is being sold at a significant markdown on the Australian branch of Binance which is arguably the largest cryptocurrency exchange in the world. Bitcoin price on Binance Australia was hovering around $23,062, compared to $29,000 on fellow Australia-based cryptocurrency exchange BTC Markets.
The latest development stems from the May 18 announcement from Binance Australia, which informed its client that it would temporarily halt Australian dollar services following a decision made by a third-party payments provider.
The ripple effect of the decision also saw Binance Australia halt AUD trading pairs for cryptocurrencies including Bitcoin, Ethereum, XRP, Cardano, Dogecoin, MATIC, and Solana.
The subsequent update involved users engaging in an alarming withdrawal spree of their digital assets and then putting them into Australian dollars before the June 1 deadline for local bank withdrawals.
Bank transfer deposits were promptly suspended, although withdrawals via PayID were set to continue until June 1 at 5 p.m. local time. Binance Australia also cautioned its Australian customers that any remaining Australian dollars on the platform after May 31 will be automatically converted to USDT.
In addition, the cryptocurrency platform issued a warning regarding the planned delisting of multiple trading pairs involving Australian dollars on June 1. Customers were also advised to be cautious and mindful of the risks involved in trading.
Binance has been embroiled in regulatory battles for some time now as its derivatives license was revoked by the Australian Securities and Investments Commission following a probe into its dealings. The crypto exchange reportedly misclassified traders as wholesale investors.
Changpeng Zhao, founder and CEO of the crypto company, has also been the subject of legal action from the Commodity Futures Trading Commission (CFTC). The CEO, along with three affiliated entities of Binance, was hit with charges of unlawful activities and violating regulations set by the CFTC.
Binance, amidst its troubled waters, has, however, expressed its ongoing efforts to secure a new service provider to ensure the continuity of Australian dollar deposits and withdrawals. Customers can still use credit or debit cards to purchase and sell digital assets, with rates aligning with current market trends.
Swyftx, an Aussie cryptocurrency broker that previously relied on Binance for liquidity, had assured its users that the termination of Binance’s Australian dollar on-and-off ramps would have no impact on its own operations.
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