Australia’s financial crimes regulator has directed Binance Australia to bring in an external auditor within the next four weeks, citing serious concerns about its anti-money laundering and counterterrorism financing (AML/CTF) controls.
The Australian Transaction Reports and Analysis Centre (AUSTRAC), the AML/CTF regulator, said the cryptocurrency giant has 28 days to nominate auditors after its latest independent review was deemed insufficient.
AUSTRAC Chief Executive Brendan Thomas said the exchange’s compliance checks had fallen short, especially given its global reach and the risks associated with digital currency platforms.
“Businesses need to maximise the value of independent reviews and ensure appropriate testing and review across critical processes and controls. They should seek and expect a level of rigour and challenge,” Thomas said in a statement issued on Aug. 22.
Concerns Over Independent Review
The regulator’s order follows its assessment that Binance’s most recent independent review was “limited in scope” compared with the scale of the company’s operations and the breadth of its services.
AUSTRAC is worried that the platform could be exploited by organised crime groups, particularly through money laundering, scams, and terrorism financing.
Thomas said the regulator’s focus was not limited to Binance alone but extended across the cryptocurrency sector.
“AUSTRAC is committed to working with industry to ensure strong safeguards are in place to make it harder for criminals to move and conceal illicit funds using digital currencies,” he said.
AUSTRAC also highlighted weaknesses in Binance Australia’s governance structure.
High staff turnover and limited senior oversight were singled out as gaps in its AML/CTF framework, raising doubts about its ability to keep pace with compliance demands in an increasingly scrutinised sector.
Thomas said robust processes were non-negotiable for multinational exchanges with large transaction volumes.
“I remind all digital currency exchanges to remain alert to transactions that indicate suspicious behaviour, including money laundering via scams and cybercrime and terrorism financing—the potential for these activities are much higher for global exchanges,” he said.
Binance Pledges Stronger Compliance
Binance Australia has acknowledged AUSTRAC’s decision to appoint an external auditor to independently review its anti-money laundering program, describing it as a supervisory measure rather than an enforcement action.
“We have engaged openly and transparently with AUSTRAC over the past several months and continue to value their guidance, expertise, and oversight. We remain committed to maintaining best-in-class compliance standards and will continuously enhance our capabilities,” Matt Poblocki, general manager of Binance Australia and New Zealand, told The Epoch Times.
He said “responsible growth means putting users’ safety first,” noting that Binance has dedicated more than 1,200 staff—nearly 22 percent of its global workforce—to compliance roles.
Spending on compliance is also expected to rise 33 percent this year, alongside efforts to expand its local operations team.
“We remain dedicated to working alongside regulators to uphold the highest standards as the digital asset industry evolves,” Poblocki added.
Binance Australia is operated under Investbybit, which is registered locally with AUSTRAC as a digital currency exchange provider.
Its parent, Binance Global, remains the world’s largest centralised exchange, though it has faced heightened regulatory pressure in multiple jurisdictions.
Former Binance CEO Changpeng Zhao last year served a four-month prison term after admitting compliance failures allowed illicit funds to move through the platform, further intensifying global concerns about the exchange’s systems.
