Regulators Push Binance to Align with Local Rules Amid Rising Crypto Scams

Binance CEO Richard Teng has issued a warning to users about a new phone scam attempting to exploit customers by impersonating Binance Support. Scammers are reportedly calling users and claiming their accounts are at risk, pressuring them to change API settings—a move that can grant attackers full access to users' funds. Binance has urged users to remain vigilant and to protect their accounts using two-factor authentication (2FA) [1]. The alert comes amid increased global scrutiny of cryptocurrency platforms and rising reports of scam activity across digital asset ecosystems.

In parallel, Binance Australia is facing an audit ordered by Australia’s financial watchdog, AUSTRAC, over concerns related to its anti-money laundering (AML) and counter-terrorism financing (CTF) controls. AUSTRAC has raised alarms about the adequacy of Binance’s compliance measures, citing a recent independent review as “limited in scope relative to its size, business offerings, and risks.” The watchdog also highlighted issues such as high staff turnover, a lack of local resourcing, and insufficient senior management oversight as factors undermining the exchange’s AML/CTF governance [2].

AUSTRAC CEO Brendan Thomas emphasized that global digital asset platforms must adapt their systems to local regulatory frameworks rather than the other way around. He noted that while large international operators may appear well-positioned to meet regulatory requirements, failure to understand and address local risks equates to non-compliance. Thomas urged companies to ensure their systems include robust customer identification, due diligence, and effective transaction monitoring, especially as the digital asset market continues to expand [2].

The increased regulatory scrutiny in Australia follows a broader crackdown on cryptocurrency-related crime in the country. According to data from Chainalysis, 2024 saw a record amount of funds flowing to illicit actors, and the trend appears to be accelerating in 2025. In response, the Australian Securities and Investments Commission (ASIC) has taken steps to combat digital investment scams, including removing over 14,000 scam-related websites and advertisements since July 2023 [2]. The regulator has also expanded its takedown efforts to include social media ads, aiming to protect consumers from fraudulent schemes.

AUSTRAC has also placed heightened focus on digital currency ATMs, which have seen a rapid rise in numbers across Australia. With over 1,600 ATMs as of March 2025, the agency has raised concerns about the lack of AML/CFT checks at these machines. New operating rules have been introduced, including transaction limits and mandatory scam warnings, to deter criminals from using these devices to launder money or execute scams. These measures were introduced after the Australian Federal Police reported over 150 scam-related cases involving digital currency ATMs in early 2025 [2].

As Binance navigates regulatory scrutiny in multiple jurisdictions, including the recent $48.5 million settlement involving Paxos and U.S. regulators over AML deficiencies, the company continues to face mounting pressure to strengthen its internal controls and transparency. The current challenges underscore the growing regulatory expectations for global crypto exchanges, especially as governments worldwide seek to mitigate the risks associated with digital asset crime. Binance has until August 29, 2025, to nominate external auditors for AUSTRAC’s approval, marking a critical step in its ongoing compliance efforts [2].

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[1] “This-is-Binance-Support-Your-account-is-at-risk-Dont-fall-for-it--A-new-wave-of-phone-scams-is-targeting-users-by-spoofing-official-calls-to-trick-you-into-changing-API-settings--giving-attackers-full-access-to-your-funds-Learn-how-to-protect-yourself-with-2FA” (https://coinstats.app/news/fa791708dceda91affee4ad72ff6e397ba680173f5873ef0bf4eba9ff6429b32_This-is-Binance-Support-Your-account-is-at-risk-Dont-fall-for-it--A-new-wave-of-phone-scams-is-targeting-users-by-spoofing-official-calls-to-trick-you-into-changing-API-settings--giving-attackers-full-access-to-your-funds-Learn-how-to-protect-yourself-with-2FA)

[2] “Australia’s finance watchdog orders Binance audit” (https://coingeek.com/australia-finance-watchdog-orders-binance-audit/)

[3] “Binance Australia faces watchdog audit over AML concerns” (https://www.mitrade.com/insights/news/live-news/article-3-1061256-20250822)