Binance Australia Ordered to Undergo External Audit Over AML Concerns

Australia’s financial regulator, AUSTRAC, has ordered Binance Australia to appoint an external auditor. The directive follows serious concerns about the crypto exchange’s anti-money laundering (AML) and counter-terrorism financing controls.

Binance Australia, operated by Investbybit Pty Ltd, faces scrutiny after a limited independent review. The review failed to match the exchange’s scale and risk exposure.

AUSTRAC highlighted high staff turnover and a lack of local management oversight. These gaps raise risks of criminal exploitation in Australia’s crypto sector.

Global Giant Under Local Pressure

Binance, the world’s largest crypto exchange by transaction volume, operates in 20 jurisdictions. Yet, its global systems often overlook local regulatory needs. AUSTRAC’s CEO, Brendan Thomas, stressed that firms must adapt to Australia’s specific risks.

The audit order aligns with AUSTRAC’s broader crackdown on crypto platforms. In 2024, the agency targeted 13 remittance and digital currency providers for non-compliance.

Binance has 28 days to propose auditors for AUSTRAC’s approval. This move signals heightened scrutiny of crypto exchanges in Australia.

The exchange’s history includes a $4.3 billion U.S. settlement in 2023 for AML violations. Former CEO Changpeng Zhao served a four-month prison sentence in 2024.

Australia’s crypto sector faces growing risks from scams and money laundering. AUSTRAC’s 2024 National Risk Assessment noted digital currencies’ vulnerability to criminal abuse.

This audit aims to ensure Binance strengthens its AML controls. Failure to comply could lead to penalties or operational restrictions.