TLDR
- AUSTRAC orders Binance Australia to appoint an external auditor over AML concerns.
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The audit comes after AUSTRAC found serious issues with Binance’s AML and CTF systems.
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Binance Australia has faced regulatory challenges in Australia, including AML governance issues.
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AUSTRAC raises concerns over Binance’s high staff turnover and local management oversight.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) has ordered Binance Australia to appoint an external auditor due to significant concerns over its anti-money laundering (AML) and counter-terrorism financing (CTF) controls. This decision, made public on August 22, 2025, marks the latest in a series of regulatory actions targeting Binance’s operations in Australia.
AUSTRAC’s chief executive, Brendan Thomas, stated that the move follows an ongoing assessment of the crypto exchange’s practices in light of the increasing vulnerabilities of digital currencies to criminal misuse. The regulator expressed concerns that Binance, despite being a global leader, may not have adequately adapted its operations to meet Australia’s specific regulatory requirements.
Concerns Over AML and CTF Controls
AUSTRAC identified several issues with Binance’s systems, which appeared insufficient for managing the risks posed by money laundering and terrorism financing. Specifically, Binance Australia’s most recent independent review was seen as insufficient, given the scale and complexity of the exchange’s operations.
“Big global operators may appear well resourced, but if they don’t understand local money laundering and terrorism financing risks, they are failing to meet their obligations,” said Brendan Thomas.
The regulator emphasized that businesses operating in multiple jurisdictions need to tailor their systems to local regulatory requirements rather than simply applying blanket policies across borders.
Staff Turnover and Lack of Oversight
Another key concern raised by AUSTRAC was Binance’s high staff turnover, particularly in senior management roles. The lack of stable local resources and oversight was flagged as a potential weakness in the exchange’s governance, especially regarding its AML and CTF compliance.
AUSTRAC called for stronger oversight of Binance’s operations, especially given the exchange’s high-risk environment and the large transaction volumes it handles. The regulator emphasized that Binance must ensure robust customer identification processes, diligent due diligence, and effective transaction monitoring.
Binance’s Response and Ongoing Challenges
In response to the order, Matt Poblocki, the General Manager of Binance Australia and New Zealand, acknowledged AUSTRAC’s decision. He stated that the audit is part of AUSTRAC’s supervisory measures and is not considered an enforcement action.
While the exchange has faced scrutiny, Poblocki assured that Binance will cooperate with the external audit to address AUSTRAC’s concerns.
Binance Australia has faced previous regulatory challenges, including actions taken by the Australian Securities and Investments Commission (ASIC). In 2024, ASIC took legal action against Binance Australia Derivatives, alleging consumer protection failures, and the Australian derivatives license for Binance was later revoked.
Impact of AUSTRAC’s Decision on Binance Australia
The order for an external audit comes at a time when Binance’s relationship with Australian regulators has been under intense scrutiny. The company has already suspended its Australian dollar services after its payment provider, Zepto, ceased supporting the exchange.
Despite these challenges, Binance remains one of the largest and most influential crypto exchanges globally. The audit order underscores the increasing regulatory scrutiny facing the exchange as it operates in high-risk regions. Binance’s ability to address AUSTRAC’s concerns may be crucial for its continued operations in Australia.
