- Binance closed down its Australian derivatives exchange in April
- The exchange is collaborating with authorities all over the world
The Australian Securities and Investments Commission (ASIC), which is the country’s financial markets regulator, has searched Binance Australia’s offices in an investigation into the crypto exchange’s now-terminated local derivatives activity, Bloomberg wrote, citing insiders who wished to remain anonymous.
The ASIC is the country’s integrated markets, corporate, consumer credit, and financial services regulator. ASIC carried out the search at Binance Australia’s offices on Tuesday according to insiders.
Derivatives platform was closed over wrong classification
ASIC’s investigation into the derivatives operation includes the exchange’s Australian branch’s classification of wholesale and retail clients. In April, the world’s biggest crypto exchange announced it was closing down its local derivatives exchange, but it was keeping the spot platform operational.
Earlier, the company announced it had closed some local users’ derivatives positions because they had incorrectly been classified as wholesale investors.
Regulator did not confirm the news
An ASIC spokesperson neither denied nor confirmed the search, saying only that they were conducting an ongoing review of the company. The regulator canceled Binance Australia’s license for its derivatives operation in April.
Binance faces probes worldwide
Binance is facing investigations all over the world, and the regulatory issues have led some payment providers to drop it as a partner. A major currency withdrawal channel recently cut off its Australian platform.
The exchange assures it’s collaborating with local authorities and trying to meet local regulatory standards to serve its users in a “fully compliant manner.” The exchange is also on French authorities’ radar. French officials are investigating into purported money laundering and illegal provision of digital asset services.
In June, the US Securities and Exchange Commission filed a lawsuit against Binance and its founder and CEO Changpeng "CZ" Zhao. They face 13 charges, including violating securities laws, mishandling customer funds, and misleading regulators and investors. Binance and CZ are being sued by the US Commodity Futures Trading Commission as well.
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