Binance woes grow as Australian regulator searches crypto exchange's offices

financialpost.com:

Binance’s offices in Australia were searched by the country’s financial markets regulator as governments around the world turn up the heat on the biggest cryptocurrency exchange.

The Australian Securities and Investments Commission (ASIC) conducted searches at several Binance Australia locations on July 4, people with knowledge of the matter said, asking not to be identified discussing private information. The action was part of an investigation into its now-defunct local derivatives business, according to the people. 

Regulatory crackdowns on Binance from Australia to Europe, the U.S. and Canada are becoming a drag on its business. The heightened scrutiny has also prompted some banking partners to drop Binance, limiting clients’ ability to deposit and withdraw fiat money on the exchange.

At a Twitter Spaces on July 5, Binance’s Canadian founder, Changpeng ‘CZ’ Zhao, acknowledged that “external pressure” has hurt the company. “Many of those things are outside of our control, but short term they have negative impacts on our business,” he said.

The platform’s global share of crypto spot trading fell for a fourth consecutive month in June, reaching a 10-month low of 42 per cent, according to a report from CCData on July 5. Binance’s derivatives market share also dropped.

ASIC’s review of the derivatives operation includes Binance Australia’s classification of retail and wholesale clients. The company said in April it would wind down the local derivatives exchange while keeping the spot platform open. The firm previously said it had closed the derivatives positions of some Australian users because they were incorrectly classified as wholesale investors.

A spokesperson for ASIC, which in April cancelled Binance Australia’s