The investigation focused on the local derivatives unit of Binance, shuttered since April.

The Australian Securities and Investments Commission (ASIC) has conducted searches at Binance Australia’s offices as part of an investigation into the company’s defunct local derivatives business. The probe focuses on Binance Australia’s classification of clients as retail or wholesale investors.

In April, Binance announced the closure of its local derivatives exchange, admitting to incorrectly categorizing some Australian users as wholesale investors. ASIC confirmed that its review of of the unit is ongoing but did not provide operational details.

Binance has expressed its cooperation with Australian authorities and its commitment to meeting regulatory standards.

In May, Binance Australia informed customers that they would lose access to Australian dollar deposits and withdrawals due to a decision by an undisclosed third-party service provider, speculated to be Westpac. In a separate development, Westpac itself banned customers from transferring funds to several crypto exchanges.

Additionally, the Commonwealth Bank of Australia (CBA) implemented partial restrictions on bank payments to crypto exchanges due to concerns over scams and customer losses.

Binance has faced increasing regulatory scrutiny worldwide. The U.S. Securities and Exchange Commission (SEC) recently filed a lawsuit against Binance and its CEO, accusing them of violating federal securities laws and operating an unregistered exchange.

French authorities have also investigated the crypto exchange for alleged illegal provision of digital-asset services and money laundering.

Furthermore, Nigeria’s Securities and Exchange Commission ordered the firm to cease operations in the country.

Notably, other cryptocurrency companies like Coinbase, Kraken, Bittrex, and Nexo have also faced regulatory enforcement actions from the SEC this year.

Related Story:  SEC Charges Binance And Its CEO Changpeng Zhao With Securities Violations

Magnifying Glass Image by OpenClipart-Vectors from Pixabay