Australia’s financial intelligence agency, AUSTRAC, has formally directed the Australian arm of Binance, Investbybit Pty Ltd, to appoint an external auditor within 28 days. The decision follows concerns over compliance shortcomings in the exchange’s anti-money laundering (AML) and counter-terrorism financing (CTF) systems.
Binance audit
AUSTRAC flagged several deficiencies during its review process, including the narrow scope of Binance’s most recent independent assessment, a lack of local staff and senior management oversight, and inadequate governance given the scale of its operations.
AUSTRAC Chief Executive Brendan Thomas referenced the agency’s 2024 National Risk Assessment, which highlighted the risks digital currencies pose to the financial system. He warned that large, global operators must uphold higher standards of customer identification, due diligence and transaction monitoring.
Binance is responsible for more than $90 billion in daily trading and operates in around 20 jurisdictions, making it the largest centralised crypto exchange by transaction volume.
AUSTRAC emphasised that its concerns form part of wider regulatory scrutiny of the cryptocurrency sector, particularly among high-risk, high-volume operators. This move adds to ongoing pressure on Binance in Australia, where the corporate regulator previously brought legal action against its derivatives unit over allegations of misclassifying clients.
Binance Australia now has 28 days to nominate candidates for the external audit. AUSTRAC will then consider and appoint the auditor.
