The Australian Securities and Investments Commission (ASIC) searched Binance Australia on July 5, Bloomberg reports. The world’s largest crypto exchange faces charges from yet another major country after the US.
ASIC’s response comes after it revoked Binance Australia’s derivatives license in April.
The division of clients into retail and wholesale investors is one particular issue that the Australian Securities and Investments Commission (ASIC) is now reviewing.
In response to the raid, Binance released a statement. The exchange claims to have “concentrated on satisfying local regulatory standards in order to help its customers in Australia in an entirely legal manner.”
The authorities recently conducted a raid at its European headquarters in France earlier in June. A money laundering investigation resulted in a raid on Binance’s France offices in Paris.
Investigating charges that the exchange incorrectly classified retail and wholesale investors in its financial derivatives business is specifically their focus.
As a result, Binance has announced it will be withdrawing from the European countries. The failure to obtain an operative license as a service provider has forced it. Now, it looks like the exchange would be conditioned to withdraw from Australia as well.
The raid on Binance’s office is an indication of the mounting regulatory pressure on the cryptocurrency sector as regulators attempt to safeguard investors. They wish to put a stop to illegal activity on a global scale.
It also calls into doubt Binance’s capacity to provide its clients. Whether it is really following the standard guidelines for its products and services. This raid might’ve challenged the exchange’s ability to continue operating in Australia.