Australian Regulator AUSTRAC Orders External Audit of Binance

• Australia’s regulator AUSTRAC has ordered Binance’s local unit to undergo an external audit
• The order was triggered by “serious concerns” over weak AML controls and poor management
• This action is part of a continuing pattern of global regulatory scrutiny faced by Binance

The regulatory spotlight is once again fixed on Binance. Australia’s financial crimes watchdog, AUSTRAC, has ordered the exchange’s local unit to appoint an external auditor after identifying “serious concerns” with its anti-money laundering (AML) and counter-terrorism financing (CTF) controls.

AUSTRAC stated that a recent independent review of Binance Australia was “too limited” for a company of its size and risk profile, prompting the formal intervention. The regulator has given the exchange 28 days to nominate an outside firm to conduct a full-scale audit of its operations.

A Pattern of “Weak Oversight”

In its order, AUSTRAC detailed several deep-rooted operational failures at the local unit, including high staff turnover, insufficient local resources, and weak senior management oversight.

Brendan Thomas, AUSTRAC’s chief executive, sent a clear message that global companies must tailor their compliance systems to meet robust local standards. This is particularly true at a time when Australia’s Crypto Rules Are Changing, and here’s What to Expect in 2025. 

“Businesses in high-risk sectors, including cryptocurrency exchanges, are required to maintain safeguards that reflect the risks in each jurisdiction,” Thomas stated, emphasizing the need for strong customer identification and transaction monitoring.

Part of a Global Regulatory Reckoning

Matt Poblocki, general manager of Binance Australia and New Zealand, stated that the company has been transparently engaging with AUSTRAC. He noted that Binance remains committed to strengthening compliance capabilities and maintaining standards that align with regulatory expectations. 

Despite these assurances and efforts to provide resources like Binance Australia’s Tax Tips for Crypto Traders Amid Regulatory Uncertainty, this action is not an isolated incident.

It is the latest chapter in a multi-year global saga of regulatory scrutiny for the world’s largest crypto exchange. The company’s compliance challenges culminated in late 2023 when its co-founder and then-CEO, Changpeng Zhao, pleaded guilty to violating U.S. anti-money laundering laws. Zhao subsequently served a four-month prison sentence in 2024.

The forced audit in Australia shows that even with new leadership, Binance is still working to overcome the legacy of its past and prove it can meet the exacting standards of financial regulators worldwide.