Binance Australia plans for better 2024 but uncertainty remains over crypto access
Banks are still restricting access to the cryptocurrency exchange, but Binance Australia is preparing to leap into the new regulatory regime set to hit the sector in 2024.
Binance Australia is pedalling hard to move on from a horror 2023, after an exodus of leadership and restrictions on deposits and withdrawals as banks turn on the cryptocurrency exchange amid scam concerns.
But Ben Rose, who has taken on the mantle of general manager of the local operation across Australia, New Zealand, and the Pacific, has big hopes for changes in favour of the crypto operator this year.
Mr Rose admitted there were “definitely challenges faced by the team last year”, as regulators turned on the cryptocurrency exchange. “Big changes were made at a global and local level to evolve the company,” he said.
“We have acknowledged our past mistakes and the team is excited to be involved in the transformation to a bright new future for Binance.”
Mr Rose told The Weekend Australian there was “a lot of eagerness and anticipation” in the crypto market after the launch of a bitcoin exchange traded fund, pointing to a resurgence of interest.
“It’s clear there have been impressive new entries both at the retail level and institutional,” he said. “Almost $1.9bn has been poured into the nine bitcoin ETFs and in Australia alone daily bitcoin trading volumes on Binance have increased 165 per cent.”
But the cryptocurrency exchange’s local fortunes may be in the hands of others, with a bank pullback from allowing access, and uncertainty about the future form regulation may take in Australia.
Mr Rose has been on a listening tour after taking on the top job at Binance Australia in March last year, jumping between his base in New Zealand and Australia.
This came after the sudden resignation of Leigh Travers after just two years in the job.
Mr Travers took on the top job at Binance as the wind of low interest rates and interest in speculative assets filled the sales of the cryptocurrency platform.
But a bout of regulatory attention from ASIC, which took interest in the company’s aggressive marketing of derivatives trading, and a broader “crypto winter” saw Mr Travers resign and Mr Rose step in.
This came as the US Commodity Futures Trading Commission launched legal action against Binance alleging the crypto platform had engaged in illegal activity, funnelling US customers to its platforms in breach of the law, as well as allowing transactions by groups including Hamas, Islamic State and al-Qa’ida.
Binance agreed to pay a $US4.3bn ($6.5bn) fine to settle the deal, with the exchange’s longtime boss Changpeng Zhao stepping down and also personally paying a $50m fine.
The company is also still facing charges from the Securities and Exchange Commission in the US alleging the company operated an illegal exchange.
Binance is facing its own challenges locally, with ASIC still largely hostile to crypto products and the Albanese government tinkering with regulatory settings for the industry.
ASIC chairman Joe Longo has made his views on crypto clear on several occasions, warning of his concern that many investors were piling into the unregulated assets only to be burned.
The regulator has also taken on several cases in the courts tied to crypto, including suing Finder over its Crypto Earn as well as taking on Qoin and Block Earner.
ASIC pulled Binance Australia’s Financial Services Licence last year, after the company volunteered to surrender it.
The Albanese government’s proposed regulation of the sector would see all exchanges required to secure AFSLs, with Mr Rose noting Binance Australia was keen to sign on to whatever regulatory regime was put in place.
“Once the crypto exchange licensing has rolled out, this could be a huge turning point for Australia to join other frontrunners in leading Web3 globally,” he said.
Mr Rose said Binance supported Treasury and ASIC’s approach, noting it was “strong as it’s a very familiar process for traditional financial services”.
“Until we see the finalised crypto exchange regime it would be too soon to ask for more clarity,” he said.
“Right now, what has been presented outlines a promising way for crypto exchanges to confidently operate in a compliant manner and serve users safely and securely.
“If future opportunities present themselves to collaborate with policymakers and regulators, then we’re all for contributing to the development of effective and appropriate digital asset regulatory frameworks that protect users and grow the industry for the long term.”
Binance has one eye on the regulators and another on the banks, which have spent much of the past year locking out exchanges or slowing down transactions amid concern that many scammers were using bitcoin or other crypto assets to offshore stolen funds.
Binance is also looking for a new bank after third-party payments provider Cuscal dumped the exchange in May last year
Mr Rose said Binance was still looking for a new bank partner to allow customers to withdraw and deposit funds. It was critical for investors “to have secure ways to access investment opportunities”.
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