5-7-2023 (SYDNEY) Binance’s Australian offices were searched by the country’s financial markets regulator, the Australian Securities and Investments Commission (ASIC), on Tuesday, as governments worldwide increase pressure on the largest cryptocurrency exchange. According to anonymous sources, ASIC conducted searches at several Binance Australia locations as part of an investigation into its now-defunct local derivatives business.
Regulatory crackdowns on Binance from Australia to Europe and the US are starting to affect its business operations. The heightened scrutiny has also caused some banking partners to drop Binance, limiting clients’ ability to deposit and withdraw fiat money on the exchange.
Binance’s global share of crypto spot trading fell for the fourth consecutive month in June, reaching a ten-month low of 42%, according to a report from CCData on Wednesday. Binance’s derivatives market share also dropped.
ASIC’s review of Binance’s derivatives operation includes the classification of retail and wholesale clients. In April, the company stated that it would wind down the local derivatives exchange while keeping the spot platform open. The firm previously closed the derivatives positions of some Australian users because they were incorrectly classified as wholesale investors.
According to a spokesperson for ASIC, the regulator’s review of the company “is ongoing,” and “we are unable to confirm or deny any operational detail such as possible searches.”
Binance said that it is “cooperating with local authorities” and “is focused on meeting local regulatory standards in order to serve our users in Australia in a fully compliant manner.” The platform’s Australian operation has been cut off from a critical local currency withdrawal route after its local payments partner withdrew support.
In Europe, Paysafe Ltd. will no longer support bank transfers of euros to and from Binance via the Single Euro Payments Area network from Sept. 25. Paysafe has also pulled support for British pound transactions on Binance.
Authorities in France have also visited Binance there and are investigating the alleged illegal provision of digital-asset services and acts of aggravated money laundering. Binance has stated that it complies with all laws in France and in every other market where it operates.
In June, the US Securities and Exchange Commission accused Binance and its founder Changpeng ‘CZ’ Zhao of mishandling customer funds, misleading investors and regulators, and breaking securities rules. Binance has called the SEC action “disappointing” and intends to defend its platform “vigorously.” Zhao and Binance also face a lawsuit from the Commodity Futures Trading Commission.
