Binance Australia has come under further scrutiny, with a particular focus on its former derivatives business, as reported by Bloomberg on July 4.
Bloomberg reported that the Australian Securities and Investments Commission (ASIC), an integrated regulator for the country’s financial markets, searched several Binance Australia locations on the day of the report.
The research focuses on specific aspects of the company’s now-discontinued local derivatives business, including classifying retail and wholesale clients.
While refusing to confirm or deny specific searches, an ASIC spokesperson acknowledged the ongoing nature of Binance Australia’s regulatory review. For its part, Binance emphasized its commitment to “cooperating with local authorities” and complying with regulatory standards in a “fully compliant manner”.
Following an assessment by ASIC in April, Binance Australia’s derivatives license was canceled and it ceased to offer derivatives trading services. Earlier in February, Binance Australia said it had closed the derivative positions of certain Australian users who had been falsely identified as wholesale investors.
The company separately lost the ability to process Australian dollar transfers through the country’s PayID network, as reported in May. Separate reports from Bloomberg suggest that access to the service officially ceased on June 1.
The company further provides continued access to its crypto spot trading platform.
Binance is facing regulation worldwide.
The investigation into Binance Australia is part of a wider regulatory cloud hanging over the crypto giant. On June 5, the US Securities and Exchange Commission (SEC) charged Binance and its founder Changpeng Zhao with mishandling client funds, helping clients circumvent international restrictions and violating securities regulations.
On June 16, it was reported that Binance France was under investigation by local authorities. French officials were investigating the alleged illegal provision of digital asset services and cases of aggravated money laundering.
These ongoing regulatory challenges facing Binance underscore the growing global scrutiny of the crypto industry.
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