Binance Australia Ordered to Appoint External Auditor by Australia’s Anti-Money Laundering Regulator Due to Serious Concerns

The prominent cryptocurrency exchange Binance Australia has been put on notice by the nation’s top anti-money laundering (AML) regulator. The Australian Transaction Reports and Analysis Centre (AUSTRAC) has demanded that the crypto platform draft in an independent auditor to inspect its AML and counter-terrorism financing (CTF) protocols. The crypto exchange giant has been granted 28 days for nominating external auditors.

AML Concerns at Binance Australia

AUSTRAC has stressed substantial apprehensions regarding Binance Australia’s AML/CTF governance. The regulator has attributed the company’s high staff turnover, subsidiary resourcing, and inadequate senior management supervision as the primary reasons behind the identified lapses in their regulatory protocols.

The careful inspection is looming as part of an inclusive campaign by AUSTRAC to tighten its vigilance on the swiftly growing digital asset industry. This stride coincides with the regulator’s recent clampdown on cryptocurrency ATM suppliers over their alleged conscription for fraudulent practices.

Binance Australia’s Response

In reaction to the directive, Matt Poblocki, the General Manager of Binance Australia and New Zealand, stated that the platform has been actively engaging with AUSTRAC over the recent months. Appreciating the regulator’s supervision, expertise, and guidance, Poblocki confirmed that Binance places a high value on transparency and openness in its dealings.

Poblocki affirmed that Binance remains dedicated to preserving their high-quality compliance standards. To achieve this aim, the platform intends to incessantly amplify its compliance capabilities in line with the industry’s best practices.

Binance’s Ongoing Difficulties with Regulatory Bodies

This recent situation is far from Binance’s first brush with global regulators. For several years now, the giant crypto exchange platform has been experiencing a rocky relationship with various regulatory bodies worldwide.

In 2021, numerous regulatory institutions issued notifications regarding Binance’s authority to operate, or its conspicuous lack thereof. Matters escalated to a critical peak in 2024 with the sentencing of Changpeng CZ Zhao, Binance’s founder. After a guilty plea, Zhao received a four-month sentence in a U.S. federal prison for violations of money laundering regulations.

AUSTRAC’s Proactive Regulation of the Crypto Industry

This move to instruct Binance Australia to appoint an external auditor comes amidst AUSTRAC’s robust attempts to gain a commanding oversight of the burgeoning digital asset industry. Acknowledging the immense growth and potential of the cryptocurrency sector, the regulator has been striving to devise and implement stringent regulatory parameters to keep potential fraudulent maneuvers and laundering activities in check.

By introducing an array of measures against crypto ATM providers and now targeting other major crypto exchange platforms like Binance, AUSTRAC is demonstrating its determination for better, more regulated practices within the digital asset space, ensuring that it remains safe and beneficial for all its users.

In summary, even as Binance Australia grapples with this critical AUSTRAC directive, the crypto giant stays committed to maintaining high compliance standards. It remains to be seen how this situation will unfold, impacting the broader digital assets industry and the platform’s reputation in the coming weeks.