AUSTRAC has required Binance Australia to audit its anti-money laundering system, citing serious concerns about internal controls and governance.
The Australian financial regulator continues to increase pressure on Binance as the Australian Transaction Reports and Analysis Centre (AUSTRAC) has decided to require Binance Australia to appoint an independent external auditor to conduct a comprehensive review of its anti-money laundering (AML) and counter-terrorism financing (CTF) systems.
According to AUSTRAC, this decision stems from serious concerns regarding the adequacy and effectiveness of internal controls as well as corporate governance at Binance Australia. Binance Australia has confirmed the decision and stated that this is a process monitoring measure, not an enforcement action.
Mr. Brendan Thomas, CEO of AUSTRAC, emphasized that the cryptocurrency sector has become a priority area in financial supervision due to the rising risk of exploitation. He also expressed concern about the ongoing staff turnover, lack of on-site resources, and loose oversight from the highest management levels at Binance, factors that raise significant questions for regulators about the sustainability of the group's AML/CTF governance.
This mandatory audit decision is not an isolated event but the latest development in Binance's ongoing legal troubles in Australia. By the end of 2024, the Australian Securities and Investments Commission (ASIC) had sued Binance Australia Derivatives for alleged violations of consumer protection regulations. Earlier, in the summer of 2023, Binance Australia's office was searched by ASIC in an investigation related to derivative trading activities. Also in that year, Binance had its license to provide derivative services revoked by ASIC due to misconduct in customer classification.
Additionally, Binance is facing serious difficulties in maintaining connections with the traditional financial system in Australia. In 2023, the payment partner Zepto abruptly terminated their partnership, causing Binance to be cut off from domestic banking infrastructure and forcing it to indefinitely suspend fiat deposit/withdrawal services in AUD. To date, the bank transfer option on the platform remains disabled; users are advised to switch to the stablecoin USDT or use peer-to-peer (P2P) transactions to withdraw AUD.
The increasing isolation from the traditional banking system indicates that Binance is facing growing legal and operational pressures in one of the most important markets in the Asia-Pacific region.
