According to Bloomberg, the Australian Securities and Investments Commission (ASIC), Australia’s market regulator, conducted a search at the office of Binance Australia, whose derivatives trading license it had cancelled as part of an ongoing investigation.
ASIC Officials Conduct Search at Binance Australia Office
Following the discovery of errors in the classification of individual and wholesale customers by Binance Australia, ASIC initiated an investigation into its derivatives operation. Sources speaking to Bloomberg reported that ASIC conducted a search at the Binance Australia office on July 4 as part of the investigation. In April, the company announced it would close its derivatives exchange while keeping its spot exchange open. The reason given for the closure of the derivatives exchange was the misclassification of some Australian users as wholesale investors, despite not meeting the country’s derivatives trading requirements.
An ASIC spokesperson, who cancelled Binance Australia‘s derivatives trading license in April, spoke to Bloomberg, saying, “We cannot confirm or deny any operational details such as conducting a search” while also stating the regulator’s investigation into the cryptocurrency exchange continues.
In a statement from Binance, it was emphasized that they are fully cooperating with the authorities in the country and are focused on meeting local regulatory standards to provide services to users in Australia in full compliance with the law.
Regulatory Pressure on Binance
Binance, the world’s largest cryptocurrency exchange by volume, is facing a series of investigations worldwide and payment providers fearing legal regulations are discontinuing their payment services to the exchange one by one. Binance’s Australian arm also had to stop Australian dollar deposit and withdrawal transactions after its payment provider stopped providing services.
Last month, it was revealed that France’s market regulator also visited Binance’s office, investigating allegations of illegally providing digital asset services and investigating intensified money laundering actions. Following this development, Binance stated that it complies with the laws in France and all other countries where it operates.
Especially, the Securities and Exchange Commission (SEC) lawsuit against Binance and its founder Changpeng Zhao (CZ) in June for allegedly misusing customer funds, misleading investors and regulators, and violating securities laws, had shaken the cryptocurrency market. Binance described the SEC’s action as disappointing, announcing it would present its branch in court. Before this, the U.S. Commodity Futures Trading Commission (CFTC) had also filed a lawsuit against Zhao and Binance with similar allegations.
