Binance Australian Office Searched as Global Regulatory Walls Close In

Binance Australia’s troubles come amidst a backdrop of global regulatory woes.

Woman carrying a large amount of documents out of a Binance office surrounded by yellow fog.
Created by Gabor Kovacs from DailyCoin
  • The Australian market is proving a tough nut to crack for Binance.
  • The firm recently closed its derivatives business amid regulatory scrutiny.
  • Recent reports indicate that this scrutiny is far from over.
  • Binance Australia’s troubles come amidst a backdrop of global regulatory woes.

Binance, the world’s largest crypto exchange, is struggling in Australia as regulators hone in on its derivatives trading business.

In April, the firm requested the cancellation of its derivatives license amid a “targeted review” from the Australian Securities and Investments Commission (ASIC). By June, it was forced to halt AUD deposits and withdrawals as it lost a major banking partner.

As the headwinds continue, recent reports indicate that the probe into the exchange’s closed derivatives business is far from over.

Australian Regulators Search Binance Offices

On July 5, citing anonymous sources close to the matter, Bloomberg reported that ASIC searched Binance offices as part of its ongoing probe into the exchange’s defunct derivatives business.

The search conducted on Tuesday is reportedly part of a review that zooms in on Binance Australia’s customer classification, among other things.

In a statement to DailyCoin, a Binance Australia spokesperson asserted that the firm is cooperating with authorities without going into details about the investigation.

"We 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," the spokesperson commented.

Binance’s regulatory troubles notably extend beyond Australia’s borders.

Regulatory Walls Closing in on Binance

The world’s largest crypto exchange is notably experiencing trouble across America and Europe.

In March, Binance found itself at the receiving end of a lawsuit from the United States Commodity Futures Trading Commission (CFTC) for illegally servicing U.S. customers. This lawsuit has been followed by a case from the U.S. Securities and Exchange Commission (SEC) on similar charges in addition to allegations of wash trading and commingling of customer deposits in June.

On the heels of these lawsuits, Binance has experienced regulatory trouble in the Netherlands, Germany, and France, where regulators are investigating it for money laundering.

The crypto exchange has nonetheless expressed its intentions to fight charges in the U.S. while continually asserting that it is working with European regulators.

On the Flipside

Why This Matters

The Australian regulator’s continued investigation of Binance raises questions about the company’s operations in the country.

Read this to learn more about Binance’s brush with Australian regulators:

Binance Australia Loses Derivatives License After ‘Targeted Review’

Coinbase’s Paul Grewal has called the SEC out for allegedly violating the law. Find out more:

Coinbase CLO: “SEC Interpretation of Investment Contract Violates the Law”

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Okoya David

David Okoya is a crypto news reporter at DailyCoin based in Nigeria. He covers various topics related to the cryptocurrency industry, including exchanges, regulations, and price movements, and strives to bring fresh angles to breaking news. With experience as a freelance crypto news writer, David upholds the highest journalistic standards, telling complete stories and answering lingering questions whenever possible.