Australian Securities and Investments Commission (ASIC) staff conducted searches at Binance Australia as part of a derivatives probe, Bloomberg reports, citing people familiar with the matter.
In April 2023, the regulator revoked the local exchange’s license. By 21 April, Binance Australia Derivatives customers were required to close all derivative positions.
The regulator is examining how the platform’s clients are classified as retail or institutional. Earlier the firm acknowledged that it had mistakenly classified retail clients as institutional.
We cannot confirm or deny any details. The regulator’s review of the company is ongoing, said an ASIC spokesperson.
Binance Australia staff said they are cooperating with local authorities and focused on complying with regulatory standards.
In May, the local unit notified customers of a suspension of deposits in local dollars due to the actions of the payment service provider.
Later Binance announced the termination of its cooperation with Paysafe, which, in the absence of alternatives, would make euro deposits and withdrawals impossible from September.
In June, the U.S. Securities and Exchange Commission filed a lawsuit against Binance and its CEO Changpeng Zhao. In this context, regulatory pressure on the company in Europe intensified.
Binance withdrew applications for licenses in the United Kingdom, Austria, Cyprus, and announced its exit from the Netherlands. The Belgian Financial Services and Markets Authority ordered the exchange to immediately cease providing services.
Also, there was an investigation by French authorities into the local subsidiary of the platform. Officials are examining alleged illegal provision of crypto services and non-compliance with anti-money-laundering obligations.
Later, Brazil’s parliament decided to vote to summon the head of Binance’s regional office to testify on similar grounds.