Binance Australia Collaborates with Local Authorities to Ensure Compliance

Binance Australia is actively working in collaboration with local authorities to meet compliance requirements, following reports suggesting that the company’s offices underwent searches on July 4.

In response to the allegations, a spokesperson for Binance Australia informed that they are cooperating with local authorities, and Binance is focused on meeting local regulatory standards in order to serve our users in Australia in a fully compliant manner.

According to a report by Bloomberg, the Australian Securities and Investments Commission (ASIC) conducted searches at various Binance Australia locations on Tuesday. The investigation is said to be a part of an ongoing probe into Binance’s now-defunct Australian derivatives business. The report cites anonymous sources who are familiar with the matter.

While the spokesperson for Binance Australia did not explicitly confirm or deny the alleged office searches, they did not provide any information regarding the company’s awareness of a local probe either.

Binance Australia Derivatives Faces License Cancellation Following Regulatory Review

In a recent development, the Australian Securities and Investments Commission (ASIC) has announced the cancellation of Binance Australia Derivatives’ license. This decision comes a few months after the regulatory body initiated a comprehensive review of Binance’s operations within the country, with a particular focus on how the platform categorized its retail and wholesale clients.

The ASIC’s action follows an investigation launched earlier this year after Binance abruptly closed several derivatives positions in February. At the time, the company stated that it was implementing investor classification compliance measures and restricting access for users who did not meet the requirements to be considered wholesale investors.

In response to the ASIC’s scrutiny, Binance has decided to adopt a more targeted approach in Australia. As a result, the exchange will be shutting down its derivatives trading services in the country. It is worth noting, however, that Binance will continue to offer spot trading services to its Australian user base.

This regulatory move by the ASIC reflects the increasing attention that Australian authorities are paying to the cryptocurrency sector. Recent reports indicate that Australian banks have flagged cryptocurrency-related scams, revealing that approximately 40% of reported scams involve digital assets. As a result, the banks have been defending their restrictive measures concerning cryptocurrencies.

The cancellation of Binance Australia Derivatives’ license signals a significant setback for the exchange in the Australian market. The company will now need to navigate the regulatory landscape carefully to regain compliance and rebuild trust with regulators. Meanwhile, traders and investors in Australia will need to seek alternative platforms for their derivative trading needs.