Australia's financial intelligence agency, AUSTRAC, has directed Binance Australia (operating as Investbybit Pty Ltd) to appoint an external auditor within 28 days due to serious concerns regarding its anti-money laundering (AML) and counter-terrorism financing (CTF) controls. The directive stems from identified deficiencies including limited independent review scope relative to the exchange's size, high staff turnover, and lack of local resourcing and senior management oversight.
AUSTRAC CEO Brendan Thomas emphasized that global operators must adapt to local regulatory requirements, stating: "Businesses can have systems and processes that apply to multiple jurisdictions—but they need to reflect local regulatory requirements. The systems must adapt to the regulatory requirements, not the other way around." The action is regulatory rather than financial, with no immediate asset restrictions or capital penalties imposed.
This enforcement forms part of AUSTRAC's broader crypto crackdown, which has targeted 13 remittance and digital currency exchange providers for compliance breaches while investigating 50 additional providers. The agency has cancelled, suspended, or refused renewals for nine providers failing to meet AML/CTF obligations. AUSTRAC has also contacted 427 registered but apparently inactive digital currency exchange providers, warning of potential deregistration.