Binance’s Legal Status in Australia Amid Ongoing Regulatory Scrutiny
Sydney, 8 January 2026 – Binance, the world’s largest cryptocurrency exchange, remains legal for use in Australia and is registered with AUSTRAC, the agency responsible for monitoring financial transactions. However, the platform has encountered significant regulatory challenges in recent years, including client misclassification and anti-money laundering concerns, prompting users to consider alternatives that offer better local support.
Is Binance Legal in Australia?
Yes, Binance is legal to use in Australia. The exchange is registered with AUSTRAC as a digital currency exchange provider, allowing Australian users to engage in spot trading. However, its derivatives business faced a licence cancellation in April 2023 due to regulatory issues. Users can still access the platform via credit/debit cards or peer-to-peer transactions, though these methods incur higher fees and slower processing times. Since 2023, Binance has not supported direct AUD bank transfers, complicating fiat on- and off-ramps for local investors.
Regulatory Issues Faced by Binance in Australia
Binance has faced multiple regulatory hurdles in Australia, reflecting broader global scrutiny of the cryptocurrency sector. In 2023, the Australian Securities and Investments Commission (ASIC) sued Binance Australia Derivatives for misclassifying 83 per cent of its Australian client base as wholesale investors between July 2022 and April 2023. This exposed retail investors to high-risk derivative products without adequate safeguards. ASIC cancelled the entity’s Australian Financial Services licence in response, leading to the closure of all positions by 21 April 2023 and compensation payments of A$13 million to affected clients.
In August 2025, AUSTRAC ordered Binance Australia to appoint an external auditor to review its anti-money laundering (AML) and counter-terrorism financing controls. The regulator cited serious concerns, including high employee turnover, insufficient local resourcing, and inadequate senior management oversight. AUSTRAC emphasised that crypto assets are increasingly vulnerable to criminal abuse, as highlighted in its 2024 National Risk Assessment. Binance acknowledged the decision as a regulatory review measure rather than an enforcement action.
These issues align with global regulatory actions against Binance, including lawsuits from the US Commodities Futures Trading Commission and probes in countries like the UK, Japan, Italy, and Singapore.
Key Facts and Alternatives to Binance
| Exchange | Key Benefits |
|---|---|
| CoinJar | Low fees (0.0–0.1%), Australian-based, AUD support, 60+ cryptocurrencies |
| Swyftx | Low fees (0.1–0.6%), Australian-based, AUD support, Crypto SMSF support, 440+ cryptocurrencies |
| Coinbase | Low fees (0–0.6%), globally trusted brand, supports AUD deposits/withdrawals, 260+ cryptocurrencies |
Australia’s cryptocurrency market is growing rapidly, with interest per capita among the highest globally. Statista projected annual growth of 19.85 per cent, reaching A$1.2 billion in revenue by 2026, and an estimated 11.16 million users. Despite challenges, Binance continues to operate its spot exchange, but many users have shifted to local alternatives for smoother AUD integration and compliance.
Frequently Asked Questions
Is Binance still operating in Australia?
Yes, Binance’s spot exchange remains operational for Australian users, though its derivatives arm closed in 2023. Users must navigate restrictions on AUD bank transfers and rely on higher-fee options like cards or P2P.
What were the main issues with Binance in Australia?
The primary issues included misclassifying retail clients as wholesale investors in 2023, leading to ASIC’s lawsuit and licence cancellation, and AML/CTF concerns prompting an AUSTRAC-ordered audit in 2025.
Are there tax implications for using Binance in Australia?
Australian users are required to report crypto transactions for tax purposes. Tools like CoinLedger can help import trades from Binance and other platforms to generate compliant reports.