Australian Clients of Binance Rushed to Exit, Thereby Creating Once-a-Lifetime Arbitrage Opportunity for Local Bitcoin Purchases
May 30, 2023
According to Reuters, Bitcoin (BTCUSD) prices on the Australian subsidiary of world’s largest cryptoexchange Binance, were trading in their peak at a 20% discount to its official market price earlier today, on Tuesday, May 30, thereby creating once-a-lifetime arbitrage opportunity for crypto traders. Apparently, that happened in a sign many customers were seeking to exit on unconfirmed rumors of regulatory crackdown against the exchange after Binance announced it could no longer accept direct deposits in Australian fiat currency.
Additional fears were apparently related to the ongoing banking crisis. Thus, Binance reportedly used Silvergate Bank, the U.S. lender that collapsed in March, for its fiat currency outsourcing operations. The same month, New York's chief financial regulator took over another crypto-friendly bank, Signature Bank, where Binance also held accounts.
The company said back in April it would close its Australian derivatives business after relinquishing a financial services license amid an avalanche of regulatory probes into its operations.
Bitcoin traded at around A$34,000 ($23,062) on Binance Australia, compared with around A$43,000 on BTC Markets, an Australia-based cryptocurrency exchange. Also, Bitcoin was quoted around $27,790 outside Australia on other exchanges such as Bitstamp.
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