Binance Australia offices raided by regulator.

Binance, the world’s largest cryptocurrency exchange, is under increased regulatory scrutiny as authorities conduct searches at its offices in Australia. According to a Bloomberg report on July 5, citing sources familiar with the matter, the Australian Securities and Investments Commission (ASIC) raided the company’s locations in the country on Tuesday as part of an ongoing investigation into its derivative business.

It’s worth noting that Binance Australia decided to wind down its derivatives exchange in April after ASIC revoked its regulatory license to operate as a derivative broker in the country. However, the spot platform of Binance Australia remains operational.

The original plan of the world’s largest crypto exchange was to offer derivative financial instruments to customers in the region through a partnership with Oztures Trading Pty Ltd. However, due to the license cancellation, this plan changed. ASIC is currently investigating Binance’s Australian division and reviewing how the company classifies retail and wholesale clients. Some users’ positions were closed due to incorrect classification as wholesale investors.

Binance Cooperating with Local Authorities

Although ASIC neither confirmed nor denied the office searches, a spokesperson from Binance disclosed that the company is cooperating with local authorities. Binance emphasized its commitment to meeting the regulatory standards of the country and fully serving its Australian users in compliance. The company aims to work closely with authorities to address any compliance requirements that may arise during the investigation.

“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,” said a spokesperson for Binance Australia to Cointelegraph.

In addition to the ongoing investigation into Binance’s derivatives business in Australia, the company has previously faced regulatory scrutiny from the security regulator. In February, ASIC launched an investigation after the exchange abruptly closed certain derivatives positions. Binance explained at the time that the decision was made to comply with investor classification requirements, resulting in restrictions for users who did not qualify as wholesale investors.

Binance Faces Global Regulatory Challenges

Aside from Australia, Binance is also facing regulatory challenges in various jurisdictions worldwide. French authorities recently conducted a raid on the exchange’s subsidiary in France to investigate alleged illegal provision of digital asset services and aggravated money laundering. However, the company’s CEO, Changpeng Zhao (CZ), denied the money laundering rumors and stated that the exchange complies with all laws in France and other markets.

In the United States, the Securities and Exchange Commission (SEC) filed a lawsuit against Binance and its CEO, accusing them of mishandling customer funds, misleading investors and regulators, and violating securities rules. In response to the civil charges, the company stated that it plans to vigorously defend its platform against the SEC’s claims. Binance and Zhao are also facing a lawsuit from the Commodity Futures Trading Commission (CFTC).

The crypto exchange has recently been ordered to cease operations in Belgium. The country’s market regulator, the Financial Services and Markets Authority, requested that the company suspend all its exchange and custody services for violating local rules and regulations.

In Belgium, Binance’s application for a legal operating license was reportedly rejected due to its failure to meet the country’s regulatory standards.

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