Find out how Binance ‘s Australian offices were raided by the Financial Markets Authority as part of a derivatives investigation. Binance assures it is cooperating with local regulators as the company faces multiple regulatory fronts in several countries.
Once upon a time, in the world of crypto finance, a company called Binance once again found itself up against a regulator. This time, it was Binance’s Australian teams who were caught off guard by an unexpected visit from investigators from the Australian Securities and Investments Commission, ASIC.
Binance ‘s situation seems to be getting more complicated?
According to information reported by Bloomberg, Binance’s Australian offices have been raided as part of an investigation into derivatives trading. ASIC is reportedly particularly interested in the classification of Binance Australia’s retail and wholesale customers.
It should be recalled that in April, Binance announced the cessation of its derivatives activities, while keeping its cash trading platform operational. This decision followed the intervention of the Australian regulator, which had revoked Binance’s license for derivatives operations.
Binance had explained that it had closed the derivatives positions of some Australian users who had been incorrectly classified as wholesale investors, according to details provided by Bloomberg.
When questioned, ASIC said it was unable to confirm or deny information about the raids, but admitted that an investigation into the crypto giant was underway.
For its part, Binance responded by saying that it was cooperating with local authorities and working to meet local regulatory standards in order to serve its users in Australia in full compliance.
Binance’s situation in Australia appears to be getting even more complicated. Indeed, the Australian platform has lost an essential means of local currency withdrawal following the cancellation of its contract with Cuscal, as Bloomberg reminds us. The company faces several regulatory fronts open against it, including in France, where it is registered as a digital asset service provider (DASP) with the AMF. The French prosecutor’s office suspects Binance of aggravated money laundering and the illegal exercise of the PSAN function.
This continues the eventful history of Binance, a company constantly adapting to regulations and investigations by financial authorities throughout the crypto world.