Regulators in Australia Search Binance Offices As Part of Derivatives Probe

Financial regulators in Australia have recently searched the offices of crypto exchange Binance during its ongoing probe of the crypto exchange. This comes as part of the derivatives probe, a business that Binance discontinued in Australia earlier this year.

As per the Bloomberg report, the Australian Securities and Investments Commission (ASIC) conducted searches at Binance Australia locations on Tuesday, July 4. As part of the probe, ASIC will be reviewing the derivatives operations of Binance Australia. Additionally, it will also review the classification of Binance’s retail and wholesale clients.

After the regulatory action, Binance Australia decided to wind down its derivatives business back in April 2023. Back in April, ASIC canceled Binance Australia’s license to continue derivatives operations. However, it still continues to operate the crypto spot trading platform. But last month in June Binance Australia ceased all AUD deposits and withdrawals.

Previously, the crypto exchange also admitted that they decided to close the derivatives positions of some Australian users after incorrectly classifying them as wholesale investors.

A spokesperson from ASIC told Bloomberg “We are unable to confirm or deny any operational detail such as possible searches” adding that the regulator’s review of the company “is ongoing”. Binance said that they would cooperate with local authorities and “is focused on meeting local regulatory standards in order to serve our users in Australia in a fully compliant manner.”

Binance Facing Regulatory Crackdown

Crypto exchange Binance has been facing major regulatory backlash from all across the globe. As a result, it has lost support from some payment providers who are concerned about potential regulatory consequences. In Australia, Binance’s platform can no longer facilitate withdrawals in the local currency.

Recently, French authorities visited Binance as part of an investigation into potential illegal activities related to digital assets and money laundering. Binance claims to comply with all laws in France and in every other country it operates.

In June, the US Securities & Exchange Commission accused Binance and its founder Changpeng ‘CZ’ Zhao of mishandling customer funds, providing misleading information to investors and regulators, and violating securities regulations.