AUSTRAC Orders Audit of Binance Australia for AML Failures
Australia’s AUSTRAC has ordered an independent audit of Binance Australia after identifying serious gaps in its Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) controls. The Binance audit will examine customer identification, transaction monitoring and senior management oversight amid concerns over high staff turnover and limited local resources. Matt Poblocki, Binance’s general manager for Australia and New Zealand, said this is a supervisory measure rather than a punitive action. This step follows ASIC’s cancellation of Binance’s derivatives licence and the abrupt loss of banking partners that froze AUD services, highlighting rising compliance pressure.
In Taiwan, prosecutors have indicted 14 people in the country’s largest crypto money laundering case, involving more than $70 million and 1,539 victims. Authorities allege the group, led by Shi Qiren, used 40 franchise outlets under CoinW and CoinThink Technology to defraud investors, converting illicit funds into USDT via BiXiang Technology. Prosecutors seek to seize over $40 million in local assets and millions in crypto and cash.
Bearish
This order for a Binance audit by AUSTRAC underscores intensifying regulatory scrutiny on crypto exchanges. Past events—such as ASIC’s cancellation of Binance Australia’s derivatives licence and abrupt banking partner cutoffs—have weighed on Binance’s operational stability and user confidence. Stricter AML and CTF requirements may slow on- and off-ramp flows and deter institutional participation in the short term. Similar regulatory actions against major exchanges in the US and EU triggered cautious trading and temporarily reduced liquidity. The Taiwan money laundering indictments further highlight risk of illicit fund misuse in crypto, contributing to negative sentiment. In the short term, traders may avoid Binance-specific products or shift volumes to other platforms, exerting downward pressure on trading volumes. Over the long term, heightened compliance could strengthen market integrity but likely increase operational costs and fees, keeping market sentiment subdued.