Binance Australia has been directed to appoint an external auditor by the country’s anti-money laundering (AML) regulator.
Australian Transaction Reports and Analysis Centre (AUSTRAC) said it has identified “serious concerns” with the crypto exchange’s AML and counter-terrorism financing (CTF) controls.
Binance Australia has 28 days to nominate external auditors for AUSTRAC’s consideration.
AUSTRAC said it has flagged concerns about Binance’s AML/CTF governance based on its high staff turnover and a lack of local resourcing and senior manager oversight.
“We have engaged openly and transparently with Austrac over the past several months and continue to value their guidance, expertise, and oversight,” Matt Poblocki, general manager of Binance Australia and New Zealand, said, according to a Bloomberg report. “We remain committed to maintaining best-in-class compliance standards and will continuously enhance our capabilities.”
Binance did not immediately respond to CoinDesk’s request for further comment.
The Binance empire has had a difficult relationship with regulators over the years. A string of regulatory bodies issued warnings about the exchange’s authorization (or lack thereof) to operate in 2021. This came to a head in 2024 when founder Changpeng “CZ” Zhao was sentenced to four months in U.S. federal prison after pleading guilty for violation of money laundering laws.
AUSTRAC has been trying to take a proactive approach to its oversight of the digital asset industry in recent months, recently enacting a series of measures on crypto ATM providers over concerns about their alleged use for scams.
