(Bloomberg) -- Crypto exchanges are eating into Binance’s share of Bitcoin trading outside the US as overseas expansion efforts and changing regulations reshape the competitive dynamics of the digital-asset industry.

Over the past year, the world’s largest crypto exchange saw its share of such Bitcoin trading drop to 55.3% from 81.3%, according to research firm Kaiko. For smaller tokens known as altcoins, the proportion fell to 50.5% from 58%.

Kaiko pegged the changes to Binance’s decision to end a promotion that scrapped trading fees. “Offshore markets have become less concentrated, with smaller exchanges gaining momentum as trade volumes recovered,” the company’s analysts wrote in a note.

Platforms like Bybit and OKX have expanded their footprints in regions such as Asia, while Binance has been grappling with the fallout of legal issues. The company and its co-founder Changpeng Zhao pleaded guilty to US anti-money laundering and sanctions violations in November last year.

Bybit’s share of non-US Bitcoin trading reached 9.3% over the past year, up from 2%, according to Kaiko. OKX accounts for 7.3% currently, up from 3%. 

Binance has been trying to rebuild its reputation while operating under the watchful gaze of US regulators. Under new boss Richard Teng — a former regulator in Singapore — the exchange has tightened token listing rules and appointed a board of directors. 

The digital-asset industry as a whole has benefited from a fourfold jump in the Bitcoin price since the start of last year. The rebound from a 2022 rout took the token to a record high of $73,798 last month, catalyzing trading volumes. Bitcoin was steady at $66,357 as of 8:20 a.m. in London on Tuesday.

--With assistance from Low De Wei.

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