Binance Australia’s offices were subjected to a raid by the country’s financial regulator as part of an ongoing investigation into potential unlawful derivatives activities. This incident occurred just weeks after Binance’s offices in France were raided in a separate probe related to money laundering. The raid on Binance’s Australian locations was reportedly conducted by the Australian Securities and Investments Commission (ASIC) on Tuesday, as per anonymous sources cited by Bloomberg. Both ASIC and Binance refrained from confirming or denying the reports, but Binance stated its full cooperation with local authorities.
The action taken by ASIC follows the revocation of Binance Australia’s derivatives license in April. ASIC initiated an investigation into the extent of harm caused to local users by the crypto exchange. Specifically, they are looking into allegations that the exchange misclassified retail and wholesale investors in its derivatives business.
In addition to the license revocation, Binance Australia had to shut down its fiat on-ramp services in May, followed by the closure of its off-ramp services on June 1. As news of the investigations spread, users rushed to withdraw their funds, resulting in a significant drop in Bitcoin’s price on the platform, which reached a 20% discount.
Earlier in June, the exchange’s European headquarters in France were also raided by authorities. The allegations against the exchange in France included aggravated money laundering and the provision of “illegal” digital asset services to local users. The crypto exchange responded by stating that the raids were routine visits, but authorities reportedly seized evidence that is currently under review.
These developments highlight the increasing scrutiny faced by the exchange from regulators worldwide. The actions taken by ASIC and French authorities demonstrate their commitment to investigating potential violations and ensuring compliance within the cryptocurrency industry. As the investigations unfold, the findings will shed more light on the specific allegations and their implications for the crypto exchange. The outcome of these probes could have a significant impact on the exchange’s operations and reputation, as well as on the broader regulatory landscape surrounding cryptocurrency exchanges.
