Binance, a cryptocurrency exchange, announced on May 26 that it would cease Bitcoin (BTC) spot trading with the Australian Dollar (AUD) on June 1.
Additionally, on the same day, the exchange would discontinue spot trading activities for other top cryptocurrencies such as Cardano (ADA), Ethereum (ETH), Dogecoin (DOGE), XRP, BNB, Solana (SOL), and Polygon (MATIC) paired with AUD.
Users of Binance’s platform can still trade the affected assets on other trading pairs, according to the company. It would, however, discontinue its Trading Bots services for the aforementioned pairings. Earlier this week, Binance discontinued support for spot trading of eight digital assets paired with the AUD.
BNB is facing regulatory scrutiny in Australia
This disadvantage comes at a time when BNB’s operation in Australia is under intense regulatory scrutiny.
The exchange revoked its derivatives license with the Australian Securities and Investments Commission (ASIC) in April. The financial regulator stated at the time that it was investigating the platform’s compliance with local laws.
It announced on May 18 that it would no longer be able to process Australian Dollar deposits for users because its third-party payment service provider, Cuscal, had ceased providing its services to the company. On the same day, Westpac, Australia’s oldest bank, prohibited cryptocurrency transactions to unnamed exchanges.
Binance’s BTC volume is decreasing
Meanwhile, according to data, BNB’s market share for BTC spot trading activities has dropped to around 40% from 85% in February 2023.
The decline, according to the report, coincided with a period in which Binance faced increased regulatory difficulties on multiple fronts.
The Commodity Futures Trading Commission (CFTC) of the United States sued Binance and its CEO, Changpeng ‘CZ’ Zhao, in March for violations of commodities law. The exchange was accused of illegally facilitating the trading of derivative orders on commodities for US citizens, according to the regulator.
The exchange exited the Canadian market on May 12, citing regulatory guidance as a barrier to its operations. Furthermore, since suspending USD-denominated bank transfers and GBP services for new users earlier this year, Binance has struggled to find new banking partners.
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