The nation's financial intelligence agency has mandated a review of the crypto giant's local operations, citing "significant deficiencies" in its compliance frameworks and giving the company 28 days to nominate an independent auditor.
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| Binance platform |
SYDNEY – Australian regulators have ordered
the local branch of Binance, the world's largest digital currency
exchange, to appoint an external auditor amid serious concerns over its anti-money
laundering (AML) and counter-terrorism financing (CTF) controls.
The
Australian Transaction Reports and Analysis Centre (AUSTRAC), the
country's financial intelligence agency, announced Friday that it had
identified significant issues following a recent independent review of Binance
Australia. The agency stated the initial review was "limited in scope
relative to its size, business offerings, and risks."
In a public
statement, AUSTRAC detailed its concerns, pointing to high staff
turnover, a lack of local resources, and weak management oversight at the
company.
"While
businesses may have safeguards that apply across several jurisdictions, they
must reflect local regulatory requirements," said AUSTRAC CEO
Brendan Thomas. "This is a global company operating across borders in a
high-risk environment. We expect accurate information about customers, their
backgrounds, and their transactions, as well as effective transaction
monitoring."
AUSTRAC has given Binance 28 days to
nominate suitable external auditors for the mandated review.
In response,
Matt Płochocki, General Manager for Binance Australia and New Zealand,
stated that the company has "cooperated openly and transparently with AUSTRAC
over the past few months."
"We
remain committed to maintaining the best standards of regulatory compliance
and will continue to enhance our capabilities," Płochocki added in a
statement.
Founded in
2017, Binance quickly captured a dominant share of the crypto trading
market, making its co-founder and former CEO, Changpeng Zhao, a
billionaire. Originally established in China, the company relocated its
operations internationally following a government crackdown on the digital
currency sector.
However, the
exchange has faced intense global scrutiny as regulators investigate the
legality of its operations, particularly after the broader crypto market collapse.
The company has been accused in several countries of allowing criminal
organizations to launder money through its platform.
This
regulatory pressure culminated in late 2023 when Zhao pleaded guilty to
violating U.S. anti-money laundering laws. He subsequently served a four-month
prison sentence in 2024.
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