The Australian Transaction Reports and Analysis Centre (AUSTRAC) has ordered the local unit of crypto exchange Binance appoint an external auditor over concerns around Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) systems.
The regulator said Friday the decision was taken “after identifying serious concerns” with Binance’s AML/CTF controls.
Matt Poblocki, Binance Australia and New Zealand general manager, told Cointelegraph, “Binance Australia acknowledges AUSTRAC’s decision,” adding that the move “is one of their supervisory review measures and not an enforcement action.”
AUSTRAC CEO Brendan Thomas said last year’s risk assessment by the regulator “highlights the increasing vulnerability of digital currencies to criminal abuse.” The request for an external audit follows regulatory engagement across the “priority sector” that the crypto industry has become.
The regulator also shared concerns around high staff turnover at Binance and a lack of local resourcing and senior management oversight. This, AUSTRAC said, raises questions about the adequacy of the firm’s AML and CTF governance.
“This is a global company operating across borders in a high-risk environment. We expect robust customer identification, due diligence and effective transaction monitoring,” said Thomas.
Related: Australia rolls out new crypto ATM rules as feds flag rising scams
Binance’s troubles in Australia
Binance has found itself in the crosshairs of Australian regulators before. In late 2024, the Australian Securities and Investments Commission (ASIC) took legal action against Binance Australia Derivatives over alleged consumer protection failures.
Back in the summer of 2023, ASIC searched Binance Australia’s offices. The investigation was part of a probe into the exchange’s defunct Australian derivatives business. This followed ASIC’s cancellation of Binance Australia Derivatives’ license after a review earlier that year.
The cancellation of he license followed local regulators reviewing Binance Derivatives over notifications of account closures sent to users due to a false classification of some users as “wholesale clients.”
Related: Australian regulator takes former Blockchain Global director to court
Binance debanked in Australia
In 2023, Binance was also forced to suspend Australian dollar fiat money services after its local payment services provider, Zepto, was instructed to stop supporting the exchange. Subsequent statements…
Click Here to Read the Full Original Article at Cointelegraph.com News…