Catenaa, Saturday, August 30, 2025- Australia’s financial intelligence agency, AUSTRAC, has directed Binance Australia to nominate an independent auditor within 28 days after flagging “serious concerns” in the exchange’s anti-money laundering and counter-terrorism financing controls.
The regulator cited inadequate independent reviews, high staff turnover, and weak local management oversight as major compliance failings that leave the platform exposed to illicit money flows.
The directive follows a series of enforcement actions in Australia, including a $5.1 million fine against Kraken for unlawful margin trading and a warning issued to Bitget for unlicensed crypto futures products.
AUSTRAC CEO Brendan Thomas emphasized that even well-resourced global operators must implement rigorous local AML/CTF measures.
The audit requirement aims to ensure Binance Australia’s governance, risk management, and oversight align with the scale of its operations.
The move comes after Binance Australia admitted in February 2023 to misclassifying 500 retail clients as wholesale investors, triggering ASIC investigations and a subsequent cancellation of its derivatives license.
Industry observers noted that the directive underscores the importance of localized compliance for international exchanges operating in high-risk markets.
Experts caution investors to confirm that providers meet local regulatory standards and remain alert to evolving Australian crypto regulations.
