Australia's ASIC raids Binance's offices to investigate its derivatives business

Authors: Amy Bainbridge, Sunil Jagtiani, Bloomberg; Compilers: Songxue, Jinse Finance

Australia’s financial markets regulator has raided Binance’s offices in an investigation into the cryptocurrency exchange’s now-defunct local derivatives business, according to people familiar with the matter.

The Australian Securities and Investments Commission, which oversees corporate, markets, financial services and consumer credit in general, searched the offices of Binance Australia on Tuesday, the people said. The committee requested anonymity because of the private information involved.

**ASIC’s review of derivatives business includes Binance Australia’s classification of retail and large investment clients. ** The company said in April that it would gradually shut down local derivatives exchanges while keeping spot platforms open. The firm previously said it had closed the derivatives positions of some Australian users because they were wrongly classified as large investors.

ASIC canceled Binance Australia’s derivatives business license in April, the spokesperson said, “We are unable to confirm or deny any operational details, such as possible searches,” adding that the regulator’s concerns about the company Review “in progress”.

Binance said it was “cooperating with local authorities” and was “committed to meeting local regulatory standards in order to serve our users in Australia in a fully compliant manner.”

Binance, the world’s largest cryptocurrency exchange, is facing a slew of investigations around the world, with some payment providers ditching it over concerns about regulatory fallout. Its Australian platform has been cut off from major local currency withdrawal routes.

Last month, French authorities visited the local Binance firm. French officials are investigating Binance for allegedly illegally providing digital asset services and serious money laundering. Binance said it complies with all laws in France and every other market in which it operates.

The SEC charged Binance and its founder Changpeng Zhao “CZ” in June with mishandling customer funds, misleading investors and regulators, and violating securities rules.

Binance called the SEC’s action “disappointing” and said it intends to “vigorously” defend its platform. Changpeng Zhao and Binance also face lawsuits from the Commodity Futures Trading Commission.