The regulator raided the Binance office with a search
Date: 2023-07-05 Author: Karina Ziganova Categories: BUSINESS
The office of the Binance crypto exchange was searched by the regulator due to the fact that the crypto exchange provided derivatives trading services
Cryptocurrency exchange Binance has faced a search of its office in Australia by the Australian Securities and Investments Commission (ASIC). Bloomberg writes about this, citing sources close to the check.
The raid is reportedly related to an ASIC investigation into the crypto exchange. The regulator wants to know what derivative services Binance Australia offered to retail and institutional clients.
The ASIC spokesperson did not publicly deny or confirm the searches at the Binance Australia office. However, he admitted in a media commentary that the regulator is investigating the exchange. The trading platform itself said that they were cooperating with local regulators, but did not specify the essence of ASIC's claims.
In April, ASIC revoked Binance Australia's derivatives license. At the time, the Australian regulator said that cryptocurrency derivatives pose "additional risks to consumers due to the use of leverage." Despite the searches, Binance continues to provide spot trading services on Binance Australia.
In May, Australia's banking sector began restricting money transfers to Binance details. One of Australia's largest banks, Westpac, has imposed a ban on transactions to the exchange. The bank said that the decision was made to protect customers from fraud.
Soon, Binance announced that Australian customers can no longer deposit money on the site through the PayID payment system. The withdrawal of Australian dollars to bank accounts has also been stopped.
Despite the restrictions, users from Australia will still be able to buy crypto on Binance with a credit or debit card, as well as make trades on a peer-to-peer (p2p) platform as usual.
