The Australian Securities and Investments Commission (ASIC), the regulatory body responsible for overseeing financial markets in Australia, searched Binance's offices in the country as part of an investigation into the crypto exchange's now-defunct local derivatives business.
Binance Australia Offices Searched by Regulator as part of Derivatives Investigation
Witnesses to the matter disclosed that they searched the ASIC's Binance Australia office on Tuesday.
The ASIC investigation focuses on various aspects of Binance Australia's derivatives trading, including the classification of retail and wholesale customers.
In April, Binance announced its decision to close its local derivatives exchange while continuing to operate its spot platform. The company had previously closed derivatives positions of some Australian users due to their misclassification as wholesale investors.
ASIC had previously revoked Binance Australia's license for derivatives trading. However, the regulator declined to provide specific details about the searches, stating that it is still investigating Binance.
Binance responded by reaffirming its commitment to meet regulatory standards and cooperation with local authorities to serve users in Australia in a fully compliant manner.
Binance, the world's largest cryptocurrency exchange, has faced regulatory scrutiny and investigations around the world, resulting in the termination of partnerships with certain payment providers due to concerns over potential regulatory ramifications.
*Not investment advice.
