As reported by Bloomberg, the Australian financial markets regulators went looking in Binance’s offices located in the country on July 4.
Binance Australia Under Investigation
According to confidential sources with insight into the situation, the Australian Securities and Investments Commission searched multiple Binance Australia facilities on Tuesday. In accordance with the aforementioned sources, the action taken was related to an investigation into its failed local derivatives company.
Cooperation with Local Authorities
In accordance with a representative from the Australian arm of the exchange, “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.”
Meanwhile, Binance decided to take a “more focused approach” in Australia and halting trading of its derivatives there. Moreover, the exchange continues to provide spot trading services in Australia.
Cancellation of Derivatives’ License
The press release follows the ASIC’s cancellation of Binance Australia Derivatives’ license in April 2023. The firm was previously investigated by Australian regulators after the business unexpectedly canceled a number of derivatives positions in February.
Binance Australia announced in May that its Australian dollar PayID deposits were currently blocked, as well as that it had suspended Australian dollar services after its local payment services partner Zepto appeared to have ceased service for the exchange.
Binance is also Facing Regulatory Action in the US
The crypto exchange is making all possible attempts to protect itself from the increase in scrutiny from regulators that has been mounting on an ongoing basis. The US Securities and Exchange Commission (SEC) sued Binance, its US office, and its CEO, Changpeng ‘CZ’ Zhao, at the beginning of June alleging a number of violations.
As per the agency, the firm misled clients about their risk management practices, overstated trading volumes, and changed and transferred “billions of dollars in investor assets” to an external entity operated by Zhao. After much uncertainty, United States Judge Amy Berman Jackson approved an agreement between Binance.US, Binance, and the SEC on June 17.