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After navigating significant challenges in the United States regarding money laundering allegations that led to the resignation of its former CEO, Changpeng Zhao (CZ), cryptocurrency exchange Binance finds itself under scrutiny once again, this time in Australia. 

Binance’s AML And CTF Controls Under Fire

The Australian Transaction Reports and Analysis Centre (AUSTRAC), the nation’s financial intelligence agency, has mandated that Binance’s local arm appoint an external auditor due to “serious concerns” about its anti-money laundering (AML) and counter-terrorism financing (CTF) controls.

AUSTRAC’s concerns emerged following a recent independent review of Binance Australia’s operations, which the agency described as “limited in scope relative to its size, business offerings, and risks.”

The agency highlighted alleged issues from the exchange such as high staff turnover, inadequate local resources, and insufficient oversight from senior management. 

In a statement, AUSTRAC emphasized the need for robust systems that align with local regulatory requirements, particularly given the global nature of the exchange’s operations. 

Brendan Thomas, AUSTRAC’s chief executive, stressed the importance of effective customer identification, due diligence, and transaction monitoring in a high-risk environment. Thomas stated:

This is a global company operating across borders in a high-risk environment. We expect robust customer identification, due diligence and effective transaction monitoring.

Global Regulatory Challenges

Binance has been given a 28-day window to nominate external auditors to address these concerns. In response to the situation, Matt Poblocki, the general manager of Binance Australia and New Zealand, stated that the exchange has been engaging openly and transparently with AUSTRAC throughout recent months. 

The exchange’s executives reassured stakeholders and users in the country about the company’s commitment to maintaining high compliance standards and improving its capabilities.

Founded in 2017, Binance has rapidly ascended to become the world’s largest cryptocurrency exchange by trading volume. However, its journey has not been without difficulties. 

After initially operating in China, Zhao moved the company’s operations internationally due to a crackdown on the crypto sector by Chinese authorities. Despite its growth, Binance has faced accusations in multiple countries of facilitating the laundering of funds for criminal organizations.

Zhao pleaded guilty to violating US anti-money laundering laws in late 2023, resulting in a four-month prison sentence in 2024. However, Bitcoinist has reported that despite being banned from taking charge of the exchange, Zhao might be seeking a pardon from pro-crypto President Donald Trump.

These legal challenges have compounded the scrutiny on Binance with the exchange taking a new direction with its new CEO Richard Teng as regulators worldwide increasingly focus on ensuring compliance.

Despite recent scrutiny from Australia’s Transaction Reports and Analysis Centre, Binance’s native token, BNB, reached an all-time high of $882 on Friday. The cryptocurrency has consistently surged over the past month, even as the broader market struggled.

Featured image from DALL-E, chart from TradingView.com 

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The arrests followed a year-and-a-half-long investigation led by the Australian Federal Police, working with state and tax authorities, according to a June 9 statement by the Australian Taxation Office.

On June 5 and 6, officers searched 14 properties in Brisbane and the Gold Coast. The raids uncovered cryptocurrency worth about $110,000, around $30,000 in cash, various encrypted devices, company records, vehicles, properties, and several bank accounts.

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The operation used a Gold Coast-based security company that offered armored cash transport. Authorities believe the business helped move criminal money, including proceeds from drug sales, through fake companies, luxury car sales, and cryptocurrency platforms.

A senior officer stated that the group deliberately tried to cover up the true source and value of the funds, while also distancing themselves from the transactions to avoid being linked to any criminal activity.

One of the suspects, a 32-year-old man from Brisbane’s Heathwood suburb, is accused of laundering over $6 million in just over a year. Police said he used a business registered under his wife’s name to receive payments from the security company. He has been denied bail and is scheduled to appear in court.

Another man, aged 58 and living in the West End, is linked to a vintage car business suspected of helping to launder about $4.1 million. He faces multiple charges related to money laundering.

Two other suspects from Maudsland, the director and general manager of the security company, have also been charged. They are accused of helping to process more than $6.4 million and have been released on bail while the case continues.

Meanwhile, a 24-year-old man, Badiss Mohamed Amide Bajjou, was arrested in Morocco on June 4. What happened? Read the full story.

The Australian government’s financial intelligence agency has imposed $5,000 cash withdrawal limits on crypto ATMs.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) adopted the new rules and refused to renew the registration of one crypto ATM operator, Harro’s Empires, after an agency task force flagged “worrying trends” in digital asset ATM compliance, according to a new press release.

AUSTRAC CEO Brendan Thomas says the task force noticed customer behavior that resembled scams, fraud and other illicit activity.

“The task force has uncovered disturbing trends, which have confirmed that cryptocurrency ATMs are being used for scam/fraud-related transactions. Surprisingly, the 60 to 70 age group was identified as one of the most prolific users of crypto ATMs in Australia.

It is a huge concern that people in this demographic are overrepresented as customers using cash to purchase cryptocurrency and, as evidence suggests, that a large number of 60-70 year old users are victims of scam activity.”

AUSTRAC’s Cryptocurrency Task Force notes that 60-70-year-olds accounted for 29% of all crypto ATM transactions by value.

Australia had only 23 operating crypto ATMs in 2019 and 60 in 2022, but now has more than 1,800. Nearly 150,000 transactions occur annually across those machines, 99% of which are cash deposits to purchase crypto like Bitcoin (BTC), Ethereum (ETH) and the stablecoin USDT, according to AUSTRAC.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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The CEO of Tether Holdings, Paolo Ardoino, is highlighting that the USDT stablecoin is largely backed by an asset widely regarded as safe and highly liquid.

In a new CNBC interview, Ardoino says if Tether were a country, the USDT issuer would rank among the top 20 largest foreign holders of US Treasuries.

“We have $152 billion now in issued tokens. And we have $172 billion in total reserves. We have more than $125 billion in US Treasuries, and the rest is very, very high liquid assets.

We own more Treasuries than Germany. Well, Tether is not a nation, but if we were a nation, we would be the 18th-largest nation holding US Treasuries.

We have more Treasuries than Germany, UAE [United Arab Emirates], Spain, Australia and we are growing. Our approach is to keep growing our US Treasuries base.”

As of March, Germany and the UAE held $111.4 billion and $104.4 billion in US Treasuries, respectively, according to US Treasury data. The countries that hold more US Treasuries than Tether as of March are Japan, China, the United Kingdom, Cayman Islands, Canada, Luxembourg, Belgium, France, Ireland, Switzerland, Taiwan, Hong Kong, Singapore, India, Brazil, Norway, Saudi Arabia and South Korea.

Last week, the U.S. Treasury Secretary Scott Bessent said stablecoins could serve as a major source of demand for the government debt.

“I’ve seen estimates that just over the short term, stablecoins could create $2 trillion of demand for US Treasuries and Treasury bills. Put that in context, the number is probably about $300 billion right now…”

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Authorities in Australia have taken action against a major network of fraudulent companies linked to crypto investment and romance scams, shutting down 95 firms believed to be operating under false pretenses.

In an April 8 statement, the Australian Securities and Investments Commission (ASIC) announced that the Federal Court had approved its application to wind up the companies.

The court ruled that the businesses should be closed on “just and equitable” grounds, with ASIC finding that many were registered using false or misleading information.

Australia Links 95 Firms to Pig Butchering Crypto Scam Scheme in Major Crackdown

The companies are suspected of being part of a widespread scam operation, particularly involving “pig butchering” schemes — a method where scammers cultivate fake romantic or emotional relationships online to lure victims into investing in bogus crypto platforms.

Justice Angus Stewart, who reviewed the case, called the evidence “overwhelming” and said there was little confidence in the management and operations of the firms in question.

A March 21 ruling examining 17 of the companies revealed extensive links to fraudulent websites and mobile applications.

The Federal Court has appointed Catherine Conneely and Thomas Birch of Cor Cordis as joint liquidators.

Their preliminary investigation revealed that only three of the 95 companies held any assets. They have since recommended the immediate deregistration of the other 92.

So far, nearly 1,500 claims have been submitted by alleged victims across 14 countries, including Australia, the U.S., India, France, Nepal, and Ghana. Reported losses currently exceed $35.8 million.

According to ASIC, the scam platforms mimicked legitimate investment and trading websites to mislead users into believing their funds were being safely managed.

In reality, the money was being siphoned into accounts controlled by the fraudsters.

“These companies were set up with the aim of providing a veneer of credibility,” said ASIC Deputy Chair Sarah Court.

“Scammers will use every tool they can think of to steal people’s money and personal information.”

ASIC Shuts Down 130 Scam Websites Weekly

ASIC noted it has been ramping up enforcement, taking down an average of 130 scam websites per week.

To date, it has disabled more than 10,000 malicious websites, including over 7,200 fake investment platforms and 1,500 phishing scams.

In a related crackdown, ASIC also recently targeted crypto ATM operators who failed to meet anti-money laundering regulations, following a spike in suspicious activity linked to the machines.

Last month, the Australian Federal Police (AFP), National Anti-Scam Centre (NASC), and Binance Australia issued warnings to victims about the sophisticated fraud scheme, which leverages fake messages to deceive users into transferring their crypto holdings.

At the time, the AFP revealed that over 130 potential victims had been notified as part of a proactive crackdown on the scam.

Fraudsters reportedly used SMS and encrypted messaging platforms to pose as Binance representatives, falsely claiming that victims’ accounts had been compromised.

The post Australia Shuts Down 95 Firms Linked to Crypto Investment and Romance Scams appeared first on Cryptonews.

Australia is taking decisive steps toward establishing a clear regulatory framework for the crypto sector, according to the Treasury’s Statement on Developing an Innovative Australian Digital Asset Industry.

The Treasury said the move aims to provide greater consumer protection, reduce risk, and bring much-needed clarity to the industry.

Regulatory framework

Under the proposed framework, certain crypto firms will be brought under existing financial services laws.

This includes exchanges, custodians, and stablecoin issuers, all of whom must obtain an Australian Financial Services License (AFSL) to operate legally. These businesses would also be subject to new rules designed to reflect the specific nature of digital assets.

The Treasury argued that these measures are essential for reducing custody, liquidity, counterparty relationships, fraud, and cybersecurity risks. Meanwhile, firms dealing in tokenized stored-value products — such as stablecoins used for payments — will need to meet strict requirements.

These include safeguards for customer assets, redemption processes, and liquidity support, mirroring the standards applied to traditional non-cash payment systems.

While the rules aim to bring more structure to the industry, not all crypto-related entities will fall under the new regime. Developers creating non-financial blockchain applications and those building or maintaining decentralized protocols will remain outside the scope.

Additionally, smaller startups that don’t meet the proposed thresholds could also be exempt, though they may still need to follow limited compliance rules.

The Treasury confirmed that a draft version of the legislation will be released later this year for public consultation. Input from the Australian Securities and Investments Commission (ASIC) will help shape the final framework.

Broader reforms

Beyond licensing, the government is exploring broader crypto-related reforms. These include a new Crypto Asset Reporting Framework (CARF) and measures to resolve debanking challenges affecting many crypto businesses.

According to the authorities:

“De-banking can have a devastating impact on de-banked businesses and individuals. It can also stifle competition and innovation in the financial services sector, and negatively impact Australia’s
economy.”

Additionally, the regulators are also examining tokenization laws and the possibility of launching a Central Bank Digital Currency (CBDC).

Meanwhile, the Enhanced Regulatory Sandbox (ERS) will undergo review in 2025. This sandbox lets firms test financial services and credit innovations without needing a license, helping drive safe experimentation within Australia’s fintech space