Binance, a leading cryptocurrency exchange, has announced that it will stop Bitcoin spot trading activities with the Australian dollar from 1 June. In addition, the exchange will remove spot trading activities for other top cryptocurrencies, including Ethereum, XRP and Dogecoin, paired with AUD on the same day. Binance’s users can still trade the affected assets on other trading pairs within its platform, but the exchange will terminate its Trading Bots services for the mentioned pairings.
This decision comes after Binance ended support for spot trading activities of eight digital assets paired with AUD earlier in the week. Binance’s operation in Australia is under regulatory scrutiny, and the exchange’s decision to cease trading of Bitcoin and other cryptocurrencies with AUD may be a response to this. In April, Binance canceled its derivatives license with the Australian Securities and Investments Commission (ASIC), and the regulator is currently investigating the platform’s compliance with local laws.
Binance’s Regulatory Troubles and Market Share Decline
Binance’s market share for BTC spot trading activities has dropped to around 40% from 85% recorded in February 2023, according to data from CoinShares cited by CryptoSlate. The decline coincided with a period where Binance faced increased regulatory troubles from multiple fronts. In March, the U.S. Commodity Futures Trading Commission (CFTC) sued Binance and its CEO, Changpeng ‘CZ’ Zhao, over violations of the commodities law. The regulator alleged that the exchange illegally facilitated the trading of derivative orders on commodities for U.S. citizens.
On 12 May, Binance exited the Canadian market, citing the country’s regulatory guidance as a hindrance to its operations. Additionally, Binance has struggled to find new banking partners as it suspended USD-denominated bank transfers and GBP services for new users earlier this year.
In May, Binance said it could no longer process Australian Dollar deposits for users because its third-party payment service provider Cuscal stopped providing its services to the firm. On the same day, Australia’s oldest bank, Westpac, banned crypto transactions to unnamed exchanges.
Binance’s decision to cease trading of Bitcoin and other cryptocurrencies with AUD may be a response to the regulatory scrutiny it is facing in Australia. The exchange has faced increased regulatory troubles from multiple fronts, including the U.S. Commodity Futures Trading Commission (CFTC) and the Australian Securities and Investments Commission (ASIC). Furthermore, Binance has struggled to find new banking partners and has exited the Canadian market. Binance’s market share for BTC spot trading activities has also declined significantly in recent months.