In a major development, the Australian Securities and Investments Commission (ASIC) has raided the Sydney office of Binance, one of the world’s largest cryptocurrency exchanges, as part of an investigation into its derivatives trading activities. According to media reports, ASIC officers executed a search warrant on Binance’s premises on Tuesday, seizing documents and computers.
The raid was reportedly triggered by Binance’s alleged breach of the Corporations Act 2001, which requires any entity that offers financial products or services in Australia to hold an Australian financial services license (AFSL).
Binance has been offering cryptocurrency derivatives, such as futures and options, to Australian customers without an AFSL, according to ASIC. These products are considered to be complex and risky and may expose investors to significant losses and fraud.
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ASIC has not commented on the raid, but it has previously issued warnings to investors about the dangers of trading cryptocurrency derivatives. In May, ASIC announced that it was taking action against several unlicensed cryptocurrency service providers, including binance, and urged Australians to be wary of these platforms.
Binance has also faced regulatory scrutiny in other jurisdictions, such as the UK, Japan, Germany, and Singapore. The exchange has been accused of operating illegally, facilitating money laundering, and failing to comply with anti-money laundering and counter-terrorism financing laws.
Binance has denied any wrongdoing and said that it is cooperating with the authorities. In a statement, binance said that it is “committed to complying with local regulations wherever we operate” and that it “takes its legal obligations very seriously”.
Binance also claimed that it does not have a physical office in Sydney, and that the raid was conducted on a third-party service provider that it uses. Binance said that it is “reviewing its relationship” with this provider and that it is “taking steps to protect our users’ interests”.
The raid on Binance’s office is a sign of the growing regulatory pressure on the cryptocurrency industry, as authorities around the world seek to protect investors and crack down on illicit activities. It also raises questions about the future of Binance’s operations in Australia and its ability to offer innovative products and services to its customers.
Binance to Suspend Transfer of Several Tokens tied to Multichain
Binance, one of the largest cryptocurrency exchanges in the world, has announced that it will suspend the transfer of several tokens tied to multichain following a major security breach in May. The tokens affected by this decision are BNB, BUSD, ETH, USDT, BTC and CAKE.
According to a blog post published by Binance on July 4, the suspension is a precautionary measure to protect users from potential risks associated with multichain transfers. Multichain is a protocol that allows users to move tokens across different blockchains, such as Binance Smart Chain (BSC), Ethereum and Polygon. However, this also exposes users to vulnerabilities that may compromise their funds or data.
Binance said that it detected a sophisticated attack on its multichain infrastructure in May, which resulted in the loss of $40 million worth of tokens. The attackers exploited a flaw in the multichain bridge contract, which allowed them to mint fake tokens and swap them for real ones. Binance claimed that it managed to recover most of the stolen funds and reimburse the affected users, but it also decided to conduct a thorough audit of its multichain system and implement additional security measures.
The suspension of multichain transfers will take effect on July 6 and will last until further notice. Binance said that it will notify users when the service is resumed and apologized for any inconvenience caused by this decision. Binance also advised users to be careful when using multichain services and to always verify the authenticity of the tokens they are transferring.