AUSTRAC’s concerns emerged following a recent independent review of Binance Australia’s operations, which the agency described as “limited in scope relative to its size, business offerings, and risks.”
The agency highlighted alleged issues from the exchange such as high staff turnover, inadequate local resources, and insufficient oversight from senior management.
Brendan Thomas, AUSTRAC’s chief executive, stressed the importance of effective customer identification, due diligence, and transaction monitoring in a high-risk environment. Thomas stated:
This is a global company operating across borders in a high-risk environment. We expect robust customer identification, due diligence and effective transaction monitoring.
Binance has been given a 28-day window to nominate external auditors to address these concerns. In response to the situation, Matt Poblocki, the general manager of Binance Australia and New Zealand, stated that the exchange has been engaging openly and transparently with AUSTRAC throughout recent months.
Founded in 2017, Binance has rapidly ascended to become the world’s largest cryptocurrency exchange by trading volume. However, its journey has not been without difficulties.
Despite recent scrutiny from Australia’s Transaction Reports and Analysis Centre, Binance’s native token, BNB, reached an all-time high of $882 on Friday. The cryptocurrency has consistently surged over the past month, even as the broader market struggled.
Featured image from DALL-E, chart from TradingView.com
