The Australian Transaction Reports and Analysis Centre (AUSTRAC) has directed Binance Australia to appoint an external auditor following concerns over its Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) systems. The move highlights increasing regulatory scrutiny on crypto exchanges operating in high-risk environments.
Why AUSTRAC Ordered the Audit?
AUSTRAC stated that the decision came “after identifying serious concerns” with Binance’s compliance controls. Issues cited include:
- High staff turnover within Binance Australia
- Lack of local resources and senior management oversight
- Questions regarding AML/CTF governance adequacy
AUSTRAC’s CEO Brendan Thomas emphasized that crypto platforms are “increasingly vulnerable to criminal abuse”, requiring robust customer identification, due diligence, and effective transaction monitoring.
Binance’s Response
Matt Poblocki, Binance’s Australia and New Zealand General Manager, acknowledged AUSTRAC’s directive, stating it is “a supervisory review measure and not an enforcement action.”
This means AUSTRAC is seeking improved compliance, not issuing penalties — for now.
Regulatory History of Binance in Australia
Binance has faced multiple regulatory challenges in Australia, including:
- 2024: ASIC filed legal action against Binance Derivatives over consumer protection failures.
- 2023: ASIC canceled Binance’s derivatives license after investigations revealed misclassification of users as wholesale clients.
- 2023 Banking Issues: Binance lost access to Australian banking services, forcing the exchange to halt AUD deposits and withdrawals. Currently, users can only use USDT stablecoin transfers or peer-to-peer (P2P) services.
This audit reflects tightened oversight on crypto exchanges in Australia. It also underscores the need for strong compliance frameworks as regulators seek to minimize money laundering and terrorism financing risks in the digital asset space.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.