Australian Regulator Reportedly Searched Binance’s Offices
- Anonymous sources have said that the offices of Binance Australia were searched on Tuesday as part of an ongoing investigation into the exchange’s derivatives operations.
- Australia’s financial regulator, who conducted the reported search, canceled Binance Australia’s derivatives license back in April, and the exchange no longer offers the service in the country.
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The Australian offices of cryptocurrency exchange Binance have been searched by local regulators on Tuesday as part of an ongoing probe into the company, Bloomberg reported on 5 July.
The publication cited people familiar with the matter, who said that the Australian Securities and Investment Commission (ASIC) conducted a search of Binance Australia’s offices as part of an ongoing investigation into Binance’s now-defunct derivatives business in the country. A spokesperson for ASIC said he was “unable to confirm or deny any operational detail such as possible searches”, adding that the review of the crypto exchange was ongoing. A spokesperson for Binance Australia also declined to confirm if the offices were search, but said that:
“We are cooperating with local authorities and Binance is focused on meeting local regulatory standards in order to serve our users in Australia in a fully compliant manner.”
The reported search comes several months after the regulator canceled Binance Australia’s derivatives license following a targeted review of its business in the country. ASIC’s investigation had a particular focus on how the crypto exchange classified professional wholesale investors, which receive fewer regulatory protections than regular retail customers. The crypto exchange shut down its derivatives business in Australia shortly after the events, but continues to offer spot trading services in the country.
Australia is not the only country that has conducted a search of Binance’s offices in recent times, with the public prosecutors in France conducting an inspection of Binance’s offices in Paris back in June. Binance has been facing regulatory scrutiny around the world, and even had the U.S. Securities and Exchange Commission file a lawsuit against the exchange for allegedly violating the country’s securities law.
- Sam Bankman-Fried’s legal counsel had claimed he should not be charged with any crimes involving FTX as it was not regulated in the U.S., only FTX.US was.
- The DoJ said the claim was irrelevant as SBF was charged for violating existing laws for misappropriating customer assets.
Former CEO of FTX Sam Bankman-Fried leaves the Federal Court in New York after pleading not guilty, 3 January, 2022.
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- The popular crypto exchange has decided to sell its business in Russia to CommEX, a crypto exchange business that was officially launched on Tuesday.
- Binance noted that it will fully exit the Russian market, and have no ongoing revenue split or any option to buy back shares in the business.
- The company said it will be suspending its crypto-backed debit card service in the Middle East on 25 August, and in Latin America by 21 September.
- Although no reason was given for the decision, the company noted that “less than 1% of users” in those regions will be affected by the change.