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Binance Australia’s offices searched amid regulatory scrutiny

In this post:

  • Binance Australia’s offices have been searched by the ASIC as part of an ongoing investigation into the company’s dissolved local derivatives operation.
  • The probe focuses on Binance’s client classification practices within its derivative operations, which led to the closure of some derivative positions and the eventual cancellation of Binance’s derivative operation license by ASIC.
  • This incident is one of many global regulatory challenges Binance faces, including probes in France and accusations by the U.S. Securities & Exchange Commission.

Binance Australia, the regional subsidiary of the world’s largest cryptocurrency exchange, has reportedly been searched by the Australian Securities and Investments Commission (ASIC), according to a report by Bloomberg. The search forms part of an ongoing investigation into the company’s now-defunct local derivatives operation.

ASIC’s examination of derivative operations

This probe by ASIC, Australia’s integrated corporate, markets, and financial services regulator, is focusing on the ways in which Binance Australia classified its retail and wholesale clients. Prior to the cessation of its derivative operation in April, Binance Australia had closed derivative positions for a number of users, citing misclassification as wholesale investors.

The search was conducted on Tuesday at Binance Australia’s offices, following the cancellation of the firm’s license for derivative operations by ASIC earlier this year. However, an ASIC spokesperson declined to confirm or deny these reports, stating only that the review of Binance Australia is still in progress.

In response, a Binance Australia spokesperson has reiterated their commitment to meeting regulatory standards and cooperating with local authorities. Despite the withdrawal of its derivative service, Binance continues to offer spot trading to Australian clients.

Binance’s global regulatory challenges

These regulatory hurdles are not limited to Australia. Binance, known globally for its expansive crypto services, has been facing increased scrutiny in multiple jurisdictions. In June, French authorities launched an investigation into Binance for alleged illegal provision of digital asset services and potential involvement in aggravated money laundering.

Similarly, the U.S. Securities & Exchange Commission (SEC) accused Binance and its founder, Changpeng ‘CZ’ Zhao, of several infractions, including mishandling customer funds and breaching securities rules. Binance has categorically denied these allegations, stating its intent to defend its platform.

In addition, Binance and Zhao are also facing a lawsuit from the U.S. Commodity Futures Trading Commission.

As Binance finds itself the subject of global regulatory probes, the saga continues to shed light on the challenges of policing an industry that operates across borders with an often unclear legal and regulatory status.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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