Overview
• Binance, the world’s largest crypto exchange, is struggling in Australia as regulators hone in on its derivatives trading business.
• Recent reports indicate that the probe into the exchange’s closed derivatives business is far from over.
• Australian authorities recently searched Binance’s offices as part of a review that zooms in on customer classification and other matters.
Binance Struggles Amid Regulatory Pressure
Binance, the world’s largest crypto exchange, is having a hard time in Australia due to regulatory scrutiny surrounding its derivatives trading business. In April, the firm requested the cancellation of its derivatives license amid a “targeted review” from the Australian Securities and Investments Commission (ASIC). By June, it was forced to halt AUD deposits and withdrawals as it lost a major banking partner. As headwinds continue, recent reports indicate that investigation into Binance’s closed derivatives business is far from over.
Australian Regulators Search Binance Offices
On July 5th, Bloomberg reported that ASIC searched Binance offices as part of its ongoing probe into the exchange’s defunct derivatives business. The anonymous sources close to this matter state that this search was conducted as part of a review focusing on customer classification and other issues. A representative from Binance Australia confirmed that they are cooperating with local authorities without going into further detail about the investigation.
Global Regulatory Walls Closing In On Binance
The troubles for Binance are not limited to Australia alone – regulatory challenges have also been experienced by them across America and Europe. In March, they were hit with lawsuit from CFTC for illegally servicing U.S customers followed by SEC case for similar charges in addition to allegations of wash-trading and commingling of customer deposits in June. Moreover, regulators in Netherlands, Germany and France have also taken action against them due to non-compliance with financial regulations there too.
Conclusion
It seems like global regulatory walls are closing in on Binance with each day passing by due to their failure to comply with financial regulations across different countries worldwide. This could potentially lead to large fines or even suspension/cancellation of their licenses which could be detrimental for both their reputation and future prospects alike if proper measures aren’t taken soon enough by them to tackle these issues head-on!
