AUSTRAC Mandates Binance Audit as Global Crypto Giants Face Stricter Local Scrutiny

Australia’s financial crime regulator has mandated that Binance Australia appoint an external auditor following concerns regarding its anti-money laundering (AML) and counter-terrorism financing (CTF) controls. The directive comes from the Australian Transaction Reports and Analysis Centre (AUSTRAC), which identified weaknesses in the exchange’s governance structure, including limited scope for independent review and insufficient local oversight by senior management [1].

Binance Australia, a registered digital currency exchange provider under the parent company Binance Global, is recognized as the world’s largest centralized cryptocurrency exchange by transaction volume [2]. Established in 2017, the company operates in around 20 jurisdictions but has faced increasing scrutiny in Australia over its compliance with local regulatory standards. This latest intervention follows AUSTRAC’s National Risk Assessment 2024, which highlighted the growing susceptibility of digital currencies to criminal exploitation.

AUSTRAC CEO Brendan Thomas emphasized the regulator’s expectation for stronger safeguards from global operators, particularly those handling large volumes of transactions. “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,” Thomas stated [2]. The regulator also noted that Binance’s recent independent review was inadequate given the size and risk profile of the company.

AUSTRAC raised concerns about high staff turnover at Binance and the lack of local expertise within its operations in Australia. These factors, according to the regulator, compromise the effectiveness of the company’s AML/CTF governance framework. Thomas reiterated the importance of aligning internal systems with local regulatory requirements, stating that global operators must adapt their processes to meet the specific regulatory environment in each jurisdiction [2].

The regulator has given Binance Australia 28 days to nominate external auditors for AUSTRAC’s consideration. Thomas urged all digital currency exchanges to remain vigilant in identifying suspicious transactions, including those linked to money laundering, scams, cybercrime, and terrorism financing. “Capacity and risk controls need to correspond to the size of a business and its market presence, particularly as it scales,” he added [2]. This directive is part of a broader regulatory effort to ensure that digital currency operators operating in Australia comply with national laws and reduce their exposure to financial crime.

Source:

[1] Australia watchdog orders Binance unit to conduct audit over money laundering (https://www.reuters.com/sustainability/boards-policy-regulation/australia-watchdog-orders-binance-unit-conduct-audit-over-money-laundering-2025-08-22/)

[2] AUSTRAC orders audit of global crypto exchange (https://www.austrac.gov.au/news-and-media/media-release/austrac-orders-audit-global-crypto-exchange)