Australia’s ASIC Searches Binance Offices Amid Ongoing Probe
Summary: Australian financial authorities have conducted a search on Binance Australia as part of an ongoing investigation into its derivatives business. In April 2023, Binance Australia ended its derivatives business, but maintained its crypto spot trading platform. The exchange has been facing regulatory scrutiny globally.
Binance Australia, has been the subject of a search by Australian financial authorities as part of an ongoing investigation. Binance suspended derivatives operations in Australia earlier this year while an inquiry was conducted into the company’s derivatives business.
Derivatives Offerings Closed
The Australian Securities and Investments Commission (ASIC) allegedly conducted a raid on Binance Australia on Tuesday, July 4. This was reported by Bloomberg. As part of its inquiry, ASIC has chosen to look into Binance Australia’s derivatives operations. There will also be an analysis of how wholesale clients differ from Binance’s retail ones.
In April 2023, in reaction to the regulatory action, Binance Australia made the decision to end its derivatives business. Binance Australia had its derivatives license canceled in April by the Australian Securities and Investments Commission (ASIC).
However, it has maintained running its crypto spot trading platform. However, Binance Australia has stopped supporting AUD deposits and withdrawals as of the end of June.
There has already been an admission by the crypto exchange that they mislabeled certain Australian clients as wholesale investors and therefore liquidated their derivatives positions.
Regulatory Scrutiny Globally
The cryptocurrency exchange Binance has been the target of heavy regulatory scrutiny from nations across the globe. As a consequence, several financial institutions that handle payments no longer support it out of concern about possible government action.
French authorities have lately investigated Binance for alleged involvement in illegal behavior related to digital assets and money laundering. Binance claims it follows all laws and rules everywhere it operates, including France.
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The US Securities and Exchange Commission (SEC) filed charges against Binance and its CEO CZ in June, accusing them of violating securities laws, mishandling client funds, and misleading investors and authorities.