SYDNEY (Reuters) – Australia’s financial markets regulator raided the offices of Binance Australia on Tuesday, as part of an investigation into its recently shut down derivatives business, Bloomberg News reported on Wednesday, citing unnamed sources.
A Binance spokesperson told Reuters the company is “cooperating with local authorities” and working to “adhere to local regulatory standards,” but did not confirm that a search took place.
The world’s largest cryptocurrency exchange shut down its derivatives business in Australia and relinquished its license to provide financial services in April after the Australian Securities and Investments Commission (ASIC), which oversees Australian financial markets, has started an investigation into the group’s practices.
The investigation, the existence of which was first confirmed in February, concerns the treatment of retail investors as professional investors. Individuals benefit from a higher level of regulatory protection.
ASIC did not immediately respond to a request for comment from Reuters.
Binance is facing lawsuits from regulators around the world. The U.S. Commodities Futures Trading Commission (CFTC) sued Binance and its founder Changpeng Zhao in March for setting up an “illegal” platform, according to the regulator.
(Lewis Jackson report, Corentin Chapron, edited by Blandine Hénault)
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