BNB price declines as Binance suffers regulatory crackdown in Australia
- Binance’s now-defunct local derivatives business is undergoing a probe led by Australia’s financial markets regulator.
- In April, Binance applied for cancellation of its derivatives business license and continued operations of the spot exchange.
- Binance native token BNB fell to $241.
The Australian financial regulator has searched Binance’s offices in the country, Bloomberg reported Wednesday citing anonymous sources, as the largest exchange in the crypto ecosystem faces increasing regulatory scrutiny in many of its markets.
Binance’s native token BNB traded at $241 at the time of writing, posting a 1.5% decline over the last 24 hours.
Also read: Trading on centralized exchanges like Binance, Coinbase grows in Q2 despite regulatory crackdown
Binance’s derivatives arm faces probe from Australian authorities
The Australian Securities and Investments Commission (ASIC), the country’s financial regulator, searched Binance’s offices in relation to the ongoing probe of the exchange’s local derivatives business. The search was carried out on Tuesday, the report said.
An ASIC spokesperson said that the regulator’s review of Binance is ongoing and the exchange platform is cooperating with local authorities. Binance told Bloomberg that its platform meets regulatory standards and serves users in a fully compliant manner. The exchange’s woes do not end at the probe as there is currently no local currency withdrawal route for Binance’s Australian users.
In April, Binance requested to cancel its derivatives license in Australia, a business that served around 100 customers. Binance’s spot exchange business continued to operate as usual. The Australian financial regulator canceled Binance’s license in April, complying with the request.
The exchange’s troubles intensified starting in June, when US regulator SEC filed a lawsuit against the platform for unregistered securities sale. Following the litigation, Binance has faced heightened scrutiny from French regulators as well.
BNB price loses ground as regulatory pressures mount
The price of the exchange’s native token Binance Coin (BNB) fell slightly below $243. As seen in the chart below, BNB price has responded to action by authorities and regulators.
The US SEC lawsuit triggered a steep decline in BNB price in early June, sending the native token from $305 to $220, a 27% decline within a seven-day timeframe.
BNB/USD one-day price chart Binance
Binance Coin trades at around $241 at the time of writing. BNB price is currently below two long-term Exponential Moving Averages, the 50-day and 200-day EMAs.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
