Binance Australia Raided by ASIC – Crypto Exchange Investigated

• Australian Securities and Investments Commission searched Binance Australia’s office on Tuesday.
• The search was part of an ongoing investigation into the cryptocurrency exchange’s now-defunct derivatives business.
• Binance has been experiencing crackdowns from governments in Europe and the United States.

Australian Regulator Searches Binance Australia’s Offices

The offices of Binance Australia, the Australian arm of Binance, were searched on Tuesday by the country’s financial markets regulator. This latest cryptocurrency news comes as governments around the world are scrutinizing the cryptocurrency exchange’s activities. According to a Bloomberg report, the Australian Securities and Investments Commission (ASIC) searched several Binance Australia locations on Tuesday as part of an ongoing investigation into the cryptocurrency exchange’s now-defunct derivatives business.

Binance Experiencing Government Crackdowns Around The World

Last month, the US Securities and Exchange Commission (SEC) sued Binance and its CEO, Changpeng Zhao, for breaking securities laws. On June 22nd, Brazilian authorities revealed that they were investigating Binance for suspected pyramid schemes. Additionally, they are also being investigated for helping customers get around a restriction on crypto derivatives investments in Brazil. A few days later, Binance dropped its licence application in Austria after German regulators denied its application to operate in the country.

External Pressure Hurting Binance Says CZ

At a Twitter Space on Wednesday, Changpeng Zhao admitted that external pressure is hurting the company stating that; “Many of those things are outside of our control, but short term, they have negative impacts on our business.“ Despite these pressures, Binance remains as one of leading global cryptocurrency exchanges with a 42% market share over all crypto spot trading volume according to CCData – a ten month low number for them.

ASIC Investigation Follows April Announcement To Wind Down Local Derivatives Exchange

The ASIC investigation follows an announcement made by Binance Australia in April which stated their intention to wind down their local derivatives exchange while keeping their fiat-to-crypto trading services intact within existing regulations enforced by local authorities such as ASIC and AUSTRAC (the Australian Transaction Reports & Analysis Centre).

Conclusion

In conclusion it seems clear that despite being one of world’s leading crypto exchanges with millions of users worldwide; due to increased scrutiny from various government agencies; it is likely that we will see more regulatory actions taken against them this year as well as potentially more fines or other sanctions if they are found to be operating outside or beyond existing regulations set out by various countries‘ agencies such as ASIC or SEC etc..