In a significant move, Binance Australia has been instructed to appoint an external auditor following serious concerns raised by AUSTRAC, the Australian financial intelligence agency. This directive, announced on August 22, 2025, stems from AUSTRAC’s findings of deficiencies in the crypto exchange’s anti-money laundering (AML) and counter-terrorism financing (CTF) protocols.
Heightened Scrutiny from AUSTRAC
AUSTRAC’s apprehensions focus on the governance of Binance’s AML/CTF measures, citing issues such as high staff turnover and insufficient local oversight. Binance Australia has been given a 28-day deadline to propose external auditors for AUSTRAC’s approval. According to a Bloomberg report, Matt Poblocki, the general manager for Binance Australia and New Zealand, emphasized their commitment to compliance, stating, “We have engaged openly and transparently with AUSTRAC over the past several months and continue to value their guidance, expertise, and oversight.”
This latest development is not an isolated incident in Binance’s regulatory journey. The exchange, a heavyweight in the global crypto arena, has frequently found itself at odds with regulators worldwide. In 2021, numerous financial watchdogs raised alarms about Binance’s operational legitimacy, culminating in the legal troubles of its founder, Changpeng “CZ” Zhao, who in 2024, was sentenced to four months in U.S. federal prison for money laundering violations. For a deeper understanding of similar issues, see our coverage of a $123M crypto scam in Australia that laundered millions through a ‘legit’ business.
A Proactive Stance on Crypto Regulation
AUSTRAC’s directive to Binance Australia is part of a broader strategy to tighten oversight of the digital asset industry. The agency has recently implemented measures targeting crypto ATM providers, aiming to curb potential scams. “AUSTRAC’s focus is to ensure strong governance and risk management frameworks across all sectors,” noted a source familiar with the agency’s initiatives. This proactive stance echoes actions in other regions, such as South Korea’s order for exchanges to halt crypto lending services.
Industry analysts suggest that AUSTRAC’s proactive approach might signal a shift towards stricter enforcement in the crypto space. The implications for Binance are multifaceted. While the exchange has pledged to bolster its compliance systems, questions remain about its ability to adapt swiftly to regulatory demands.
Navigating the Compliance Maze
For Binance, the challenge lies not only in addressing AUSTRAC’s immediate concerns but also in rebuilding trust with regulators. Past encounters with regulatory bodies have underscored the complexities of operating a global crypto exchange in a fragmented legal landscape. The exchange’s efforts to enhance its compliance capabilities will be closely monitored by industry stakeholders and may set precedents for other players in the crypto domain.
Looking ahead, the situation raises broader questions about the future of cryptocurrency exchanges under increasing regulatory scrutiny. Will Binance’s response set a benchmark for industry standards, or will it expose further vulnerabilities in the burgeoning crypto market? As the digital asset sector continues to evolve, the answers to these questions will likely shape the trajectory of crypto regulation worldwide.
Source
This article is based on: Binance Australia Directed to Appoint External Auditor Over ‘Serious Concerns’
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
