Financial regulators in Australia have taken action in their ongoing investigation of crypto exchange Binance, as they recently searched the exchange’s offices.
The latest search is focused on the derivatives probe, which the exchange had already stopped in Australia earlier this year. According to a Bloomberg article, on Tuesday, July 4, the Australian Securities and Investments Commission (ASIC) inspected Binance Australia locations. The examination by ASIC is concentrated on the split of retail and wholesale clients at Binance Australia’s derivatives business.
Binance Australia Ceases Derivatives Business
Binance Australia decided to shut down its derivatives operations in April 2023 after coming under regulatory investigation. ASIC has already withdrawn Binance Australia’s authorization to carry on with its derivatives business. The exchange still runs its cryptocurrency spot trading platform, nevertheless. Nevertheless, Binance Australia stopped accepting any AUD for deposits or withdrawals last month in June.
Notably, Binance Australia came under fire for canceling certain Australian customers’ derivatives contracts because they were mistakenly labeled as wholesale investors. This disclosure raised questions about the exchange’s adherence to legal requirements.
ASIC’s representative declined to provide operational details but said that the regulator is still looking into the exchange. According to the official, “We are unable to confirm or deny any operational detail such as possible searches”. The exchange declared its willingness to cooperate with local authorities in order to fully adhere to national regulatory standards and offer services to Australian users.
“is focused on meeting local regulatory standards in order to serve our users in Australia in a fully compliant manner.”
Binance Faces Regulatory Backlash Worldwide
Significant regulatory difficulties have been plaguing the exchange, a well-known cryptocurrency exchange, on a worldwide scale. Due to their concerns about possible regulatory repercussions, a number of payment providers have stopped supporting them as a result of this. Australian dollar withdrawals are no longer possible on the exchange platform.
In connection with an investigation into potentially illegal activities involving digital assets and money laundering, French investigators recently paid the exchange a visit. In France and any other country where it does business, the exchange says that it abides by all laws.
The United States Securities and Exchange Commission (SEC) charged the exchange and its founder Changpeng ‘CZ’ Zhao with breaking securities laws, mishandling client cash, and giving investors and regulators false information in June.
The exchange is facing a difficult environment while attempting to reestablish confidence and compliance across several nations as the regulatory onslaught on Binance continues.