Binance: Austrac orders crypto exchange to appoint | Australian Markets
The financial crimes regulator has ordered the Australian department of a large crypto exchange to appoint an auditor amid “serious concerns” about money laundering.
AUSTRAC on Friday rang the alarm over Binance Global’s native business Investbybit Pty Ltd, giving the company 28 days to herald consultants for a review of operations.
Binance is the world’s largest crypto platform and carries billions of {dollars} of trades day by day.
But the watchdog was anxious about doubtlessly insufficient governance of money laundering dangers and lack of management oversight in Australia.
“This is a global company operating across borders in a high-risk environment. We expect robust customer identification, due diligence and effective transaction monitoring,” AUSTRAC boss Brendan Thomas stated.
He stated the regulator wished to “make it harder for criminals to move and conceal illicit funds using digital currencies”.
“Big global operators may appear well resourced and positioned to meet complex regulatory requirements, but if they don’t understand local money laundering and terrorism financing risks, they are failing to meet their (money laundering and counter-terrorism financing) obligations in Australia.,” Mr Thomas stated.
“Businesses can have systems and processes that apply to multiple jurisdictions, but they need to reflect local regulatory requirements. The systems must adapt to the regulatory requirements, not the other way around.”
Binance founder Changpeng Zhao reportedly pleaded guilty in an American courtroom in 2023 for money laundering and sanction violations.
The company didn’t instantly reply to a request for remark.
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