According to a recent report from Bloomberg News, the Australian Securities and Investments Commission (ASIC) has conducted a search of Binance Australia’s office as part of an investigation into the company’s recently closed derivatives business.
Citing unnamed sources, the report states that ASIC staged the search in order to review Binance’s derivatives operation, specifically focusing on how clients were classified. This development comes after Binance, the world’s largest cryptocurrency exchange, announced in April that it would be shutting down its derivatives business in Australia and surrendering its financial services license.
The decision was made amidst an ongoing ASIC probe into the business. The regulator’s investigation, which was first confirmed in February, revolves around allegations of misclassifying retail investors as wholesale clients, with the former group being entitled to a higher level of regulatory protection.
A spokesperson for Binance has stated that the company is cooperating with local authorities and is committed to meeting local regulatory standards. However, the spokesperson did not confirm the reported search of Binance’s Australian office.
Binance has been facing regulatory challenges and investigations on a global scale. In March, the U.S. Commodities Futures Trading Commission (CFTC) filed a lawsuit against Binance and its founder, Changpeng Zhao, accusing them of operating an “illegal” exchange. The U.S. Securities and Exchange Commission (SEC) also recently accused Binance and Zhao of violating securities rules.
As regulatory scrutiny continues to mount, Binance and its operations are under increased scrutiny in various jurisdictions, with authorities aiming to ensure compliance and protect investors in the rapidly evolving cryptocurrency industry.
