• The Australian Securities and Investments Commission (ASIC) searched Binance Australia’s offices on Tuesday as part of an ongoing investigation.
• Binance has been facing crackdowns from governments in Europe and the US, including a lawsuit by the SEC in May 2021.
• Despite external pressure, Binance remains the number one cryptocurrency exchange globally, controlling 42% of global crypto spot trading volume.
Binance Australia Searched By ASIC
The Australian Securities and Investments Commission (ASIC) searched several locations owned by Binance Australia on Tuesday as part of an ongoing investigation. This follows a similar investigation by regulators from other countries such as Brazil and Germany, who have accused the cryptocurrency exchange of violating securities laws or helping customers get around restrictions on crypto derivatives investments in Brazil. Despite this external pressure, Binance remains the number one cryptocurrency exchange globally with 42% share of global crypto spot trading volume.
SEC Lawsuit Against Binance
In May 2021, the US Securities and Exchange Commission (SEC) filed a lawsuit against Binance and its CEO Changpeng Zhao for allegedly breaking securities laws. In response to this action, CZ admitted that “many of those things are outside of our control” but “short-term, they have negative impacts on our business”. Despite these challenges, Binance’s market share is still relatively high compared to other exchanges worldwide.
Brazilian Authorities Investigating Binance
Brazilian authorities recently revealed that they were investigating whether or not Binance was involved in any pyramid schemes and if it had helped customers illegally get around a restriction on crypto derivatives investments in Brazil. Although no evidence has been found yet to suggest that either accusation is true, investigations are still ongoing into both matters.
Austria License Application Denied
Binance also experienced difficulties when trying to obtain a licence from Austria to operate within their country; German regulators denied its application last month which led to the company dropping its Austrian license application altogether. This further signifies how government regulations are impacting cryptocurrency exchanges like Bince across Europe and elsewhere.
Bince remains at the forefront of the crypto sector despite increased scrutiny from governments across multiple jurisdictions including Europe and North America due to alleged violations or suspected illegal activities related to their operations. The ASIC search is just another example of external pressures being brought to bear on companies operating within this space; however despite these pressures it appears that there is still enough interest for them remain successful globally – at least for now