Australia’s financial watchdog has mandated that Binance appoint an external auditory ‘after identifying serious concerns with the crypto exchange’s anti-money laundering and counter terrorism financing (AML/CTF) controls’.
Binance’s Australian arm, Investbybit Pty Ltd, is registered under the Australian Transaction Reports and Analysis Center (AUSTRAC) as a digital currency exchange provider.
The financial oversight body notes that the latest action against Binance ‘follows regulatory engagement across the priority sector’.
Binance is widely regarded as the world’s largest cryptocurrency exchange, with a market valuation of over $62 billion. It holds regulatory approvals and permissions in around 20 jurisdictions.
AUSTRAC’s CEO, Brendan Thomas, noted that “AUSTRAC is committed to working with industry to ensure strong safeguards are in place to make it harder for criminals to move and conceal illicit funds using digital currencies”.
The executive furthered that “Big global operators may appear well resourced and positioned to meet complex regulatory requirements, but if they don’t understand local money laundering and terrorism financing risks, they are failing to meet their AML/CTF obligations in Australia”.
This is not the first time that Binance has come under regulatory oversight, having previously paid over $4 billion to resolve a United States Justice Department investigation in 2023, a CN$6 million ($4.38 million) administrative penalty in 2024 by Canadian authorities and recently skirting a US Securities and Exchange Commission (SEC) civil lawsuit.
AUSTRAC notes that its concerns over Binance’s Australian operations were ‘prompted by several issues including Binance’s latest independent review which was limited in scope relative to its size, business offerings and risks’.
The watchdog also ‘flagged concerns with high staff turnover at Binance and a lack of local resourcing and senior management oversight, raising questions about the adequacy of its AML/CTF governance’.
Binance Australia was given 28 days (from August 22nd) to nominate external auditors for AUSTRAC’s consideration and selection.
