Binance Australia sells Bitcoins for 20% cheaper - Market inequality

in LeoFinance10 months ago

Binance Australia sells Bitcoins for 20% cheaper - Market inequality

Recent news from the UK saw politician's driving to have crypto currency regulated as gambling and for many this is an odd approach due to the fact many perceive digital assets like Bitcoin as a form of wealth storage. These comments have gone as far as to say that Bitcoin can be a hedge against inflation.

For some part, it does make sense because you have an asset that is being massively purchased and with everyone seeing it the same it's volatility is limited, but is it? and is it anything more than gambling?

For many of us we see Digital assets outside of the realm of gambling but what is truly occurring behind the scenes on those who have the control when it comes to price and the overall market?

It's nothing new the questions aimed at the market with many saying that crypto currency and the digital asset industry needs to fix itself first. This is to ensure the sector is operating effectively and transparently to provide a service to all around the world fairly, transparently and equally.

There have been many questions raised over the years in relation to the operation of centralised exchanges, no doubt this is where decentralised exchanges have continued to grow in the digital asset world to decentralise the power and provide an alternative to those who seek to engage with the digital sector world outside of the current norms.

Problem with Centralised Exchanges

There are many concerns around centralised exchanges which has also caused regulators to hone in on a lot of the operators also raising concerns and increasing regulations are focused on keeping centralised exchanges in check.

One of the key requests from many regulators across the world is for licenses to be issued to crypto service providers to enable an agreed approach to the market that all crypto services must follow. Given the high risk which we saw FTX and Terra (Luna) Network almost completely decimate the entire industry these calls are probably warranted to ensure one business can't take the entire sector out.

While the market has some what begun to recover from those incidents it is unclear on how many of these market crashes the sector can handle before it is completely exited and put aside as a failed experiment. While we can say that we are through the woods, it looks likely that our next event is possibly occurring but brings in much much bigger questions about whose running the show.

Binance Australia

We've been following the developing Binance Australia issues surrounding Binance Australia's Financial License being cancelled which has caused a flow on impact to their Australian market. PayID a payment settlement system developed by Westpac bank and utilised to settle payments almost instantly has been cancelled on Binance.

This means the Australian wing of the company will no longer be able to accept PayID and instant settlements to bank accounts, while Australian's will be able to deposit through a debit card it will need to follow the typical 3 day waiting period.

Binance has also stated it will impact Australian customers in withdrawing AUD and the only way that Australian customers will be able to withdraw funds is by swapping digital assets creating a taxable event and then shifting those tokens to another exchange to be sold and withdrawn, creating yet again another taxable event.

Australian Bitcoin Market Separates from Main Market

Australian's weren't happy on how Binance was operating and regulators had concerns so decided to probe the centralised exchange and Binance didn't appear to want regulators snooping around so in an industry first, relinquished it's financial services license to prevent Aussie regulators being able to take a look at how the company was being managed.

This has now resulted in Australian's exiting AUD pairs of Bitcoin and while free market enterprise and leaving things up to the market is a common approach, it appears Binance in this incident decided to say nope and leave the Australian market to it's own demise having MADE the decision to shut up shop.

It has taken no responsibility in how it has managed the situation and left Australian customers out of pocket without adequate exit strategy and the impacts have caused Bitcoin in AUD pairs to sell at 20% under the current price valuation.

These heavy losses have been caused by Binance and no doubt everyone who is involved in the digital asset space should be watching this closely because it shows the lack of accountability on Centralised Exchanges and commitment to it's customers.

With many Australian's now out of pocket for no reason of their own other than being what some could say as misled due to Binance CEO's statement confirming that Aussie funds are SAFU, while taking no action to develop an exit strategy for Australian's speaks volumes of the type of operation the worlds number one exchange is running.

Buyers beware, you're nation could be next and another market crash heading your way.

image sources provided supplemented by canva pro subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.

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