The Australian regulator ASIC has conducted office searches at Binance as part of an ongoing derivatives probe that began in April this year.
Australian financial regulators have conducted office searches at Binance as part of their ongoing derivatives probe. Binance had previously discontinued its derivatives business in Australia before the investigation.
According to Bloomberg, the Australian Securities and Investments Commission (ASIC) conducted searches at Binance Australia on July 4 as part of a probe into the exchange’s derivatives operations. ASIC will examine Binance’s derivatives activities and assess the categorization of its retail and wholesale clients.
Following regulatory action, Binance Australia made the decision to shut down its derivatives business in April 2023 after its license was canceled by ASIC. However, the exchange continues to operate its crypto spot trading platform.
In June, Binance Australia also stopped accepting AUD deposits and withdrawals. Additionally, the exchange acknowledged mistakenly categorizing some Australian users as wholesale investors and subsequently closed their derivatives positions.
Binance Confronts Regulatory Crackdown:
Binance, the cryptocurrency exchange, is encountering significant regulatory challenges worldwide. This has led to the loss of support from certain payment providers due to concerns about potential regulatory repercussions. In Australia, Binance no longer allows withdrawals in the local currency.
Additionally, French authorities have visited Binance as part of an investigation into possible illegal activities involving digital assets and money laundering. Binance asserts its compliance with laws in France and all other countries of operation.
In June, the US Securities & Exchange Commission (SEC) made allegations against Binance and its founder Changpeng ‘CZ’ Zhao. The accusations include mishandling customer funds, providing misleading information to investors and regulators, and violating securities regulations.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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