Australia Regulator Searches Binance Offices

[Sophie Robert]

The Australian Securities and Investment Commission (ASIC) has carried out a search at Binance’s offices in Australia as a part of an ongoing inquiry into the crypto exchange’s former derivative businesses.

Fast facts in last few weeks -

• The regulator’s probe includes Binance Australia’s retail and wholesale clients, Bloomberg said in its report citing people familiar with the matter.
• In April, the ASIC canceled Binance Australia’s derivatives license a day after it received a cancellation request from the exchange.
• “We are winding down our local derivatives exchange to focus our efforts on our locally registered spot exchange,” Binance Australia said on Twitter on April 6.
• Binance, the world’s biggest crypto exchange, faces a series of investigations globally. The U.S. SEC has filed a lawsuit against Binance.US, a crypto exchange set up by Binance chief Changpeng “CZ” Zhao to serve U.S. clients, for allegedly breaching securities laws.
• The SEC also named several altcoins as securities, including BNB, the native token of Binance, and therefore requiring appropriate registration.
• Binance’s French unit has also come under scrutiny after being accused of illegally operating in the country, despite the crypto exchange being registered as a digital asset service provider with France’s markets regulator since May 2022.

Binance take on this -
The search, which happened on Tuesday, concentrated on Binance’s adherence to Australian regulations. A Binance spokesperson recently said that the exchange is “ Committed to complying with applicable laws and regulations and cooperating with regulators”. Binance’s derivatives division was shut down in December 2020, following actions taken by international authorities cautious about the lack of safeguards for investors in the digital currency industry.

SEC’s Allegations Against Binance and CZ -
Furthermore, the U.S. Securities and Exchange Commission (SEC) has accused Binance and its founder, Changpeng ‘CZ’ Zhao, of mishandling customer funds, misleading investors and regulators, and violating securities regulations.

Binance expressed disappointment with the SEC’s actions and affirmed its determination to vigorously defend its platform.