The Australian securities regulator searched Binance Australia’s offices on Tuesday as part of a probe into its recently closed derivatives business.
According to the article, this action results from a thorough examination into the closure of Binance Australia’s derivatives business by the Australian Securities and Investments Commission (ASIC).
The ASIC investigation aims to carefully examine the workings of Binance’s derivatives division and carefully assess the classification of its clients, who are anonymous individuals who have disclosed insider information.
This most recent step followed Binance’s earlier declaration in April that it intended to shut down its derivatives operation in Australia and voluntarily renounce its financial services license.
Allegations that Binance incorrectly labeled retail investors as wholesale clients, providing them with better regulatory protection, set off the ASIC probe.
After first announcing the start of its investigation in February, the regulatory agency has since stepped up its efforts by carrying out a raid on Binance’s Australian office, evinced by the gravity and tenacity of its investigations.
In response to the raid, a representative for Binance reaffirmed the company’s steadfast dedication to working with regional authorities. However, neither a confirmation nor denial of the raid on the Australian headquarters was made directly by the spokesperson.
Binance is battling regulatory problems
Being the biggest exchange in the world, Binance has encountered regulatory obstacles and probes in numerous jurisdictions, posing severe difficulties for the exchange.
The US CFTC sued Binance and Changpeng Zhao, the company’s founder, in March. The parties were allegedly running an illegal platform, according to the agency.
Recently, Binance and Zhao were accused of breaking securities laws by the US SEC. The legal steps taken in the United States have increased the pressure that Binance is under.
The choice to shut down its Australian derivatives business and voluntarily renounce its financial services license is a striking example of the difficult regulatory environment that cryptocurrency companies must operate in.
Additionally, the crypto exchange just withdrew its application for a license in Austria. Binance has also chosen to revoke its registration in the United Kingdom. These proceedings came shortly after the corporation cut back on its activities in Canada.
The exchange needs help in adequately addressing and resolving regulatory issues as the exchnage finds itself embroiled in ongoing investigations and legal fights across numerous nations.
