Crypto exchange Binance Australia hit with a $2m fine for spam following ACMA investigation

An investigation by the communications regulator found the crypto giant sent millions of non-compliant emails to Australian users.

Binance Australia chief executive Leigh Travers.

The Australian arm of the world’s largest cryptocurrency exchange, Binance, has been fined $2m for breaching the Spam Act, after an investigation by the communications regulator found it sent more than 5.7 million emails that made it difficult or impossible for recipients to unsubscribe.

The Australian Communications and Media Authority (ACMA) led an investigation that found Binance sent millions of non-compliant commercial emails to Australians between October 2021 and May 2022 promoting its services, and also sent 25 emails without the consent of recipients.

Binance Australia recently ticked over one million local users, and is led by former DigitalX chief executive Leigh Travers. Its platform allows users to buy and sell digital currencies, including cryptocurrency.

Consumer trust in cryptocurrency companies has copped multiple blows in recent months, particularly thanks to the spectacular implosion of Sam Bankman-Fried’s FTX exchange, and the closure of multiple local crypto start-ups.

The price of bitcoin is down 60 per cent in the past 12 months, while rival cryptocurrency ethereum is down 64 per cent.

Australian Communication and Media Authority chair Nerida Loughlin. Picture: John Feder

ACMA chair Nerida O’Loughlin said that the regulator had contacted Binance on multiple occasions to warn it that it might have had compliance problems, and the company failed to take adequate action.

“Customers should not be made to log in to stop receiving messages,” Ms O’Loughlin said in a statement.

“It is very concerning that we continue to see breaches of the spam laws from large-sized companies that should have good compliance practices in place. The Spam Act has been in force since 2003, so there are simply no excuses.”

Binance Australia has agreed to a three year, court-enforceable undertaking committing to an independent review of its marketing practices, and must also train its staff and report back to ACMA.

Binance co-founder and chief executive Changpeng Zhao. Picture: AFP

a Binance Australia spokeswoman said: “Binance Australia sent marketing emails to users that inadvertently failed to comply with the Spam Act.

“The majority of the non-compliant emails required users to be logged into their account before being able to unsubscribe.

“We accept ACMA’s findings and have paid the fine. Importantly, we have upgraded our system to ensure marketing emails are compliant with ACMA’s standards. We have also appointed an independent consultant to review email communication policies and conduct training for employees responsible for sending electronic messages.

“We apologise to users who have been inconvenienced and are committed to providing Binance users the best customer experience.

“Binance Australia became aware of ACMA’s investigatory notice in May. ACMA’s requests were coming through an email that was not intended for regulator requests, and therefore it was not monitored regularly.”