• Binance Australia’s office was searched by the Australian Securities & Investments Commission (ASIC) on Tuesday, according to a Bloomberg report.
• The company’s derivatives license was canceled in April following an investigation into how it classified clients as professional wholesale investors.
• Binance is also under investigation in the U.S and France for allegedly operating unlawfully and listing unregistered securities exchange.
Binance Australia’s Office Searched
Binance Australia’s office was searched on Tuesday by the country’s financial regulator, the Australian Securities & Investments Commission (ASIC), according to a Bloomberg report. The company’s derivatives license was canceled in April following an investigation into how it classified clients as professional wholesale investors, as they can get fewer regulatory protections than regular retail customers.
Investigations in Multiple Jurisdictions
Binance is also under investigation in the U.S and France for allegedly operating unlawfully and listing unregistered securities exchange. The company’s U.S arm and its CEO Changpeng “CZ” Zhao are the subject of a lawsuit from U.S regulators that alleges the exchange operated unlawfully and listed unregistered securities exchange. A spokesperson for ASIC told CoinDesk that its investigation is “ongoing,” but that it was “unable to confirm or deny any operational detail such as possible searches.”
Regulatory Scrutiny Faced By Company
The regulatory scrutiny faced by Binance has led to it ceasing its Australian derivatives business following regulatory warnings from ASIC . In June, Binance was raided by the public prosecutor in Paris, France for “aggravated money laundering” charges, leading them to take action against the company both domestically and internationally .
Restricted Access To Retail Investors
In order to comply with local regulations, Binance has restricted access to retail investors within Australia while still allowing access for institutional investors . This will allow users based within Australia to have access to crypto trading with regulated entities while avoiding potential risks associated with unregulated services .
Company Cooperating With Local Authorities
A Binance Australia spokesperson told CoinDesk that they are cooperating with local authorities and are focused on meeting local regulatory standards in order to serve their users in Australia in a fully compliant manner .”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 the spokesperson via e-mailed statement