Australian regulator searched Binance Australia’s offices
The Australian Securities and Investments Commission (ASIC) recently conducted a search of Binance Australia’s offices as part of an ongoing investigation into the cryptocurrency exchange’s derivatives business. This development adds to the growing scrutiny from governments around the world towards Binance and its activities in the crypto market.
According to a Bloomberg report, ASIC officials carried out the search on Tuesday at multiple Binance Australia locations. The regulator’s focus was on the now-defunct derivatives business of the exchange. Sources close to the matter revealed that the investigation is part of a wider crackdown on Binance’s activities.
This search comes on the heels of regulatory actions against Binance in other countries. In the United States, the Securities and Exchange Commission (SEC) recently sued Binance and its CEO, Changpeng Zhao, for alleged securities law violations. Meanwhile, in Brazil, authorities are investigating the exchange over suspected involvement in pyramid schemes and violation of restrictions on crypto derivatives investments.
Binance also faced setbacks in Europe, where it dropped its license application in Austria after German regulators denied its application to operate in the country. These regulatory pressures have had a negative impact on the company, as acknowledged by Binance CEO, CZ, during a Twitter Space session. CZ stated that external pressure is hurting the business, although Binance still holds the position of the world’s largest cryptocurrency exchange.
In April, Binance Australia announced its decision to wind down its local derivatives exchange while keeping its spot platform operational. The closure of derivative positions for numerous Australian users was attributed to them being falsely classified as wholesale investors. Binance maintains that it is cooperating with local authorities and remains focused on meeting regulatory standards to serve its Australian users in a fully compliant manner.
The ASIC investigation is ongoing, and the regulator has neither confirmed nor denied the operational details of the search. As governments around the world tighten their scrutiny on cryptocurrency exchanges, Binance faces significant challenges in maintaining its position in the global market. Recent data shows that Binance’s share of global crypto spot trading volume has declined for four consecutive months, reaching a 10-month low of 42%.
In conclusion, the search of Binance Australia’s offices by ASIC adds to the growing regulatory pressure on the cryptocurrency exchange. As governments continue to scrutinize Binance’s activities, the company faces challenges in maintaining its market position and meeting regulatory standards in various jurisdictions.
