Binance appears to be back in hot water.
Australia’s financial markets regulator, the Australian Securities and Investments Commission (ASIC), has reportedly conducted searches at the exchange’s local offices, the cryptocurrency exchange. ASIC reportedly carried out the searches on Tuesday.
The move is part of an ongoing investigation into the now-defunct local derivatives business of the exchange, according to Bloomberg’s anonymous sources.
“We are cooperating with local authorities and Binance is focused on meeting local regulatory standards in order to serve our users in Australia in a fully compliant manner,” a spokesperson for Binance Australia told Decrypt.
When Decrypt contacted ASIC for confirmation of the searches, the regulator did not respond at the time of writing.
The regulator’s review of the derivatives operation includes an examination of the firm’s classification of retail and wholesale clients.
Binance Australia’s license for its derivatives operation was canceled by ASIC in April. The exchange thus announced it would wind down the local derivatives exchange but maintain its spot trading platform.
The company had previously closed the derivatives positions of some Australian users, citing that they were incorrectly classified as wholesale investors.
Binance facing legal pressure worldwide
The recent developments in Australia are part of a broader global scrutiny that Binance is facing.
The exchange has been dropped by some payments providers wary of regulatory fallout, and its Australia platform has been cut off from a key local currency withdrawal route.
Last month, French authorities visited Binance’s local offices as part of an investigation into the alleged illegal provision of digital-asset services and acts of aggravated money laundering. Binance has maintained that it abides by all laws in France and in every other market where it operates.
In the United States, the Securities and Exchange Commission (SEC) accused last month Binance and its founder, Changpeng “CZ” Zhao, of mishandling customer funds and breaking securities rules.
Binance has called the SEC action “disappointing” and has vowed to defend its platform “vigorously.”
Zhao and the exchange also face a lawsuit from the Commodity Futures Trading Commission.
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Source: https://decrypt.co/147348/binance-australia-says-cooperating-authorities-amid-regulatory-scrutiny
