This regulatory move is part of ongoing scrutiny, as Binance has previously faced legal challenges from ASIC in late 2024 over consumer protection failures and account classification issues.

AUSTRAC, Australia's financial intelligence agency, has ordered Binance Australia's local branch, Investbybit Pty Ltd, to appoint an external auditor within 28 days due to serious concerns over its AML and counter-terrorism financing controls, highlighting ongoing regulatory scrutiny.

AUSTRAC emphasized the increasing vulnerability of digital currencies to criminal abuse and stressed the importance of robust customer identification, due diligence, and transaction monitoring for crypto companies operating in high-risk environments.

This intervention follows AUSTRAC's recent focus on crypto regulation, including measures targeting crypto ATM providers amid concerns over scams, and is part of broader efforts to address vulnerabilities in digital currency markets.

AUSTRAC's concerns are driven by Binance Australia's high staff turnover, lack of local resources, insufficient senior management oversight, and past issues such as the suspension of its Australian dollar fiat services in 2023, which limited user withdrawal options.

Binance Australia publicly acknowledged AUSTRAC's decision, describing it as a supervisory measure rather than an enforcement action, while its general manager, Matt Poblocki, emphasized the company's commitment to compliance.

Binance Australia has a history of regulatory issues, including warnings from authorities and the 2024 sentencing of its founder, Changpeng 'CZ' Zhao, for money laundering law violations.

The regulator's decision also reflects concerns about Binance Australia's governance, including high staff turnover and lack of local resources, which undermine effective oversight.

Binance Australia's general manager reiterated the company's commitment to maintaining high compliance standards and values AUSTRAC's guidance.