Australia’s financial intelligence agency, AUSTRAC, has ordered Binance Australia to undergo an independent audit following concerns over the exchange’s anti-money laundering and counter-terrorism financing (AML/CTF) controls.
The directive, announced on August 22, targets Investbybit Pty Ltd, Binance’s local entity registered as a digital currency exchange provider. Despite Binance’s status as the world’s largest centralized exchange by trading volume, AUSTRAC said the platform has failed to demonstrate sufficient compliance with Australia’s financial crime safeguards.
Australia’s financial crimes agency ordered Binance’s local arm to appoint an external auditor after finding “serious concerns” with money laundering and terrorism financing controls at the cryptocurrency exchange https://t.co/IpKdo5dnQ2
— Bloomberg (@business) August 22, 2025
AUSTRAC CEO Brendan Thomas noted that the agency’s 2024 National Risk Assessment identified digital assets as increasingly vulnerable to criminal exploitation.
“Big global operators may appear well resourced and positioned to meet complex regulatory requirements, but if they don’t understand local risks, they are failing to meet their obligations in Australia,”
Thomas said.
Among AUSTRAC’s concerns are the limited scope of Binance’s most recent independent review, high staff turnover, and insufficient senior management oversight in the Australian market. The agency also highlighted gaps in governance and a lack of adequate local resources to monitor risks associated with large-scale crypto transactions.
AUSTRAC stressed that international operators must adapt their compliance frameworks to local regulations rather than relying solely on global systems.
“This is a global company operating across borders in a high-risk environment. We expect robust customer identification, due diligence, and effective transaction monitoring,”
Thomas added.
Binance Australia now has 28 days to nominate external auditors for AUSTRAC’s approval. The review will test the adequacy of the exchange’s systems, processes, and reporting mechanisms against Australia’s AML/CTF standards.
The move comes as regulators worldwide tighten scrutiny of crypto exchanges, with AUSTRAC signaling that major platforms will face heightened expectations in high-risk sectors.
Further deepening its regulatory push, AUSTRAC voiced concerns over the growing risks associated with crypto ATMs. The agency criticized operators for failing to implement robust anti-money laundering (AML) and counter-terrorism financing (CTF) controls, warning that these lapses could further expose the financial system to criminal exploitation.
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