The Australian Transaction Reports and Analysis Centre (AUSTRAC) has ordered the local unit of crypto exchange Binance to conduct an external audit of their anti-money laundering (AML) and counter-terrorist financing (CTF) systems.
AUSTRAC's Demands from Binance
AUSTRAC made this decision after identifying serious concerns with Binance's AML/CTF controls. Matt Poblocki, Binance Australia and New Zealand general manager, acknowledged AUSTRAC's decision, indicating it as part of supervisory measures rather than enforcement actions.
Regulatory History
In late 2024, Australia's Securities and Investments Commission (ASIC) also took legal action against Binance Australia Derivatives over alleged consumer protection failures. In the summer of 2023, ASIC conducted searches at Binance Australia's offices as part of a related investigation.
Suspension of AUD Services
In 2023, Binance was forced to suspend Australian dollar fiat services after its local payment services provider, Zepto, ceased support. Users are now advised to use alternative methods to withdraw Australian dollars, such as purchasing the USDt stablecoin.
The ongoing situation with Binance in Australia highlights the increasing scrutiny from regulators towards crypto exchanges and the necessity for ensuring security and transparency within financial systems.
