On August 22, 2025, the Australian Transaction Reports and Analysis Centre (AUSTRAC) issued a directive requiring the local branch of global cryptocurrency exchange Binance to engage an independent auditor for its anti-money laundering (AML) and counter-terrorism financing (CTF) program. The decision stems from AUSTRAC’s review, which identified deficiencies in governance, limited capacity for independent oversight, and an insufficient number of locally based compliance personnel.
AUSTRAC highlighted concerns about the scope of internal reviews, noting that critical areas such as transaction monitoring, customer due diligence, and management reporting lacked robust third-party validation. The regulator indicated that the appointment of an external auditor is essential to ensure that Binance Australia’s AML/CTF framework meets national risk expectations and international standards. This move aligns with recent enforcement actions targeting digital asset platforms worldwide, emphasizing the importance of thorough compliance mechanisms.
Binance Australia’s general manager, Matt Poblocki, acknowledged the regulator’s decision in an official statement, affirming the company’s commitment to enhancing transparency and control measures. He emphasized that the audit will focus on strengthening policies, processes, and staff training to mitigate potential vulnerabilities associated with high transaction volumes and cross-border transfers. The exchange previously faced scrutiny for allegations of misclassifying retail clients and has since undertaken internal reforms to align with regulatory requirements.
The external audit is anticipated to cover a comprehensive assessment of Binance Australia’s customer onboarding procedures, ongoing transaction surveillance, sanctions screening, and suspicious activity reporting mechanisms. AUSTRAC will review the auditor’s findings and may impose further requirements based on identified gaps. Industry observers consider this development a critical test for global exchanges operating under multiple regulatory regimes.
The directive reinforces Australia’s proactive stance on digital finance regulation, which has included licensing mandates, public consultations on token classifications, and collaboration with international bodies to combat illicit finance. As cryptocurrency adoption grows, regulators are prioritizing measures to safeguard market integrity and protect consumers from financial crime.
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