Binance Australia has been instructed to engage an external auditor by the nation’s anti-money laundering (AML) regulator, the Australian Transaction Reports and Analysis Centre (AUSTRAC). AUSTRAC has raised serious concerns about Binance’s governance regarding AML and counter-terrorism financing (CTF) controls, highlighting issues such as high staff turnover and insufficient local resources and oversight from senior management.

Key Points:

• AUSTRAC requires Binance Australia to nominate external auditors within 28 days for its review.
• Matt Poblocki, General Manager of Binance Australia and New Zealand, expressed the company’s ongoing commitment to compliance and transparency:

  “We have engaged openly and transparently with AUSTRAC over the past several months and value their guidance, expertise, and oversight. We remain committed to maintaining best-in-class compliance standards and will continuously enhance our capabilities.”

The history of Binance’s interactions with regulatory bodies has been tumultuous, with various agencies warning the exchange about its authorization status, culminating in significant legal challenges for its founder, Changpeng Zhao. AUSTRAC aims to improve its oversight of the crypto industry, enacting new regulations regarding crypto ATM providers to combat scams.