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Nazia Saeed
- AUSTRAC found Binance Australia’s AML and CTF systems insufficient, citing gaps in independent reviews, high staff turnover, and weak local management oversight
- Binance Australia has 28 days to appoint external auditors and implement stronger controls, including robust customer identification and transaction monitoring
- The action is part of a broader regulatory tightening in Australia, with authorities actively enforcing compliance across crypto exchanges and introducing new frameworks for stablecoins and crypto rechargers
Binance Australia has come under regulatory scrutiny for weaknesses in its anti-money laundering (AML) and counter-terrorism financing (CTF) systems. According to an official Aug. 22 release, the Australian Transaction Reports and Analysis Centre (AUSTRAC) has directed the local arm of the exchange to appoint an external auditor to assess and strengthen its compliance controls.
AUSTRAC identifies gaps in oversight
AUSTRAC cited several concerns, including limited scope in Binance’s independent reviews, high staff turnover, and insufficient local senior management oversight. The watchdog said these issues raise doubts about the adequacy of Binance Australia’s AML and CTF governance.
The regulatory body specifically noted that Binance’s latest independent review was not comprehensive enough given the company’s size, range of services, and the risks it handles.
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CEO emphasizes local compliance responsibility
AUSTRAC CEO Brendan Thomas emphasized that operators must adapt their systems to local laws, implementing strong safeguards that prevent criminals from concealing illicit funds using digital currencies.
Big global operators may appear well resourced and positioned to meet complex regulatory requirements, but if they don’t understand local money laundering and terrorism financing risks, they are failing to meet their AML/CTF obligations in Australia.
Binance Australia now has 28 days to nominate external auditors for AUSTRAC’s consideration and selection. The exchange must also implement stronger controls, including robust customer identification, thorough due diligence, and effective transaction monitoring.
Part of broader regulatory crackdown
Throughout 2025, Australian authorities have been tightening oversight of the local crypto industry. In February, AUSTRAC warned crypto exchanges and service providers to comply with anti-money laundering laws or face severe consequences.
Authorities reviewed up to 50 crypto firms and took enforcement action against 13 for failing to meet requirements, including canceling, suspending, or refusing to renew their registrations.
The government also recently released a framework to regulate crypto rechargers and stablecoin issuers, aiming to protect consumers and uphold market integrity. AUSTRAC reaffirmed that beyond Binance Australia, all crypto exchanges must ensure compliance with local laws to avoid operational risks and regulatory penalties.
