- AUSTRAC orders Binance Australia to undergo tough external compliance audit.
- Regulators highlight serious oversight gaps at Binance’s local operations.
- Binance faces mounting global pressure as Australia tightens crypto rules.
Australia’s financial crimes regulator has moved against Binance, instructing its local unit to undergo a full external audit. According to AUSTRAC, the order follows the discovery of “serious concerns” with the exchange’s anti-money laundering and counter-terrorism financing systems.
The regulator explained that a recent independent review of Binance Australia was too narrow in scope for a company of such scale. It has now directed the exchange to nominate an auditing firm within 28 days to carry out a comprehensive evaluation of its operations.
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AUSTRAC Points to Weak Oversight and Limited Resources
Investigators highlighted recurring challenges inside the exchange’s local operations, such as rapid staff turnover and a shortage of onshore expertise. They also pointed to weak senior management oversight as a factor that leaves the platform exposed to compliance risks.
Brendan Thomas, AUSTRAC’s chief executive, stressed that global players must tailor their risk systems to each jurisdiction. He added that businesses in high-risk industries like cryptocurrency must maintain effective identification and monitoring processes to safeguard financial integrity.
Binance’s Response Amid Heightened Global Pressure
Matt Poblocki, who leads Binance Australia and New Zealand, said the company is engaging openly with regulators. He reiterated that Binance is committed to bolstering compliance and aligning its standards with Australian regulatory expectations.
However, the order comes against the backdrop of Binance’s wider global struggles with regulatory bodies. In 2023, its co-founder and then-CEO Changpeng Zhao admitted to breaching U.S. anti-money laundering rules, a case that led to a prison sentence the following year.
Rising Pressure as Crypto Rules Tighten
The audit mandate signals that even under new leadership, Binance faces persistent challenges in winning regulator trust. It also reflects Australia’s determination to enforce tougher rules as the country prepares for a new crypto framework in 2025.
AUSTRAC’s move marks a significant test for Binance Australia’s ability to prove its systems can meet strict compliance standards. The decision highlights mounting pressure on the exchange to correct gaps and regain credibility in the global financial landscape.
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