Binance pseudo-exchange cheats financial regulators and users in AustraliaWe recommend reading the materials:
- Binance users from Australia are considering a class action suit because of Binance's disruptions
Binance, as always in its repertoire - violation of all financial laws and work without financial licenses, just a crypto-casino. Australia, where it was stated that Binance had the status of a legal and regulated business - turned out to be a confirmation of that, no financial license, deception of the financial regulator and users of Binance Australia. Falsification of legal documents, public deception with the provision of unregulated financial instruments, the resignation and flight of management from the country. Everything, in the best traditions of conducting criminal and illegal business of the underground and illegal "exchange" Binance, and its offshore "owner" in the person of Binance Holdings Ltd.
ScamBinance's joint investigation with users in Australia
On April 8/9, 2021, Binance Australia significantly changed its "Terms of Service" and "Products Offered". As seen on Binance Australia's homepage now, but if you compare it to April 1, 2021 (or later), you can see that Binance Australia has removed the "Derivatives" and "Finance" trading options at the top and added in writing "Binance Australia offers ONLY spot conversion of fiat money into digital currency and vice versa", similar to what the Binance Lite platform previously provided, this is about the Binance service which operated at Binancelite.com before the Binance AUS launch:
Binance appears to be engaged in legal and financial fraud, forgery, and deception of Australian financial regulators in Australia. The big unpleasant surprise, which affected all 200,000 current customers of Binance Australia (the number of customers stated in Binance Australia, there is no way to check this figure), are the new conditions, let's look at them.
The new "Terms of Service":
- "The platform allows you to deposit AUD into your account using au.binance.com and withdraw AUD into your bank account. All other aspects are provided by Binance Holdings Ltd ("Binance"), including all digital currency trading activities, accounts and wallets, and storage of your digital currency." [Author's note: It looks like they're trying to avoid regulators by sending it all offshore - similar to the Forbes Tai Chi investigation?]
- "We are not an Australian financial services licensee."
[Author's note: What happened to Binance Australia's previous advertising slogan, which said that Binance was fully compliant with all Australian laws and regulations? That's it, no more compliance with all Australian laws and regulations? Neither is there a financial services license].
-"Since buying digital currency is not like buying other currencies where a legal entity such as the government maintains the currency, there is no legal entity that regulates digital currencies. Rather, digital currencies rely on blockchain technology to protect your assets and move them around. In the event of force majeure, there is no entity that will protect the digital currency marketplace to minimize investor loss.'
[Author's note: What happened to the SAFU fund ads that Binance promotes? Now, in Australia at least, Binance is abandoning the SAFU fund and explicitly stating that it is not responsible for investor/trader losses and assets.]
Now the conditions have changed and they have become similar, to the past (before the imaginary, full legalization, legality and regulation) in "Binance Lite", the company that existed before Binance Australia, which provided only spot services for residents of Australia.
As a reminder, Binance Australia was launched in July 2020 with full pomp as a fully legal, licensed and registered organization in Australia, with all products similar to the global (on the illegal and underground platform Binance.com - this article was published on social media by the CEO of Binance Australia and Twitter Binance AUS - the maximum official confirmation and notification to the public in Australia):
Australian user, accidentally discovered "legal and financial fraud", deception by Binance Holdings Ltd and Binance Australia. When trying to get answers and support on the fact of losing money due to futures failures - turned out to be surprising. Binance Australia employees began to bluntly lie that the platform Binance Australia, as it turned out (!) offers no futures, no leverage, no derivatives, no options, no tokens with leverage, and other financial instruments, except for spot trading (this is an outright lie and deception). As proof, the client publishes some of the correspondence between Binance Australia staff and CEO Jeff:
But if you look at the Binance.com/en-AU Web Archive, you can clearly see - that futures as well as other financial instruments are listed on the Binance Australia menu:
The correspondence clearly shows that Binance Australia employees claim that Binance AUS is a separate entity and business of Binance Global, and therefore they do not offer futures (at the time of the correspondence - March 2021). But the best part is something else, the client has contacted the Australian financial regulator to find out how it should be under Australian laws if Binance Australia offers derivatives or any other financial products. How Binance Australia must comply with Australian laws and respond to consumer complaints, as in social media customers (Australian social media users) complain about the lack of any support from Binance Australia, in parallel the customer attached to his complaint changes "Terms of Service", after a while the CEO of Binance Australia contacted the customer and issued the following:
In fact, Binance Australia does not engage in any crypto trading or anything else, Binance Australia only accepts Australian dollar deposits and withdrawals and trading is done on behalf of Binance Holdings Ltd ("Binance") for reasons that, the Australian Securities and Investments Commission ("ASIC") would require us to be AFS licensed and comply with Australian laws and regulations if they offer any financial products under the Initial coin offerings and crypto-assets.
Where, as an example, the Australian licensed firm Coinspot is listed, under whose license, users can contact the Australian Financial Ombudsman Service if a problem arises (under the jurisdiction of the Australian Financial Complaints Authority (AFCA)), this is a requirement of the Complaints and Disputes Act. But it is not possible for Binance Australia to contact the Australian Financial Complaints Authority (AFCA). Binance Australia's operations in Australia are purely illegal, it is not licensed by the Australian Securities and Investments Commission (ASIC). In fact - in direct violation of every conceivable and inconceivable law in Australia and defrauding the Australian Securities and Investments Commission (ASIC) by defrauding Australian users.
Australian Transaction Reports and Analysis Centre (AUSTRAC)
A user may object, stating that the web site Binance.com/en-AU states that:
Is Binance regulated in Australia?
Binance Australia is operated by InvestbyBit Pty Ltd (ABN 98 621 652 579), a registered digital currency exchange regulated by the Australian Transaction Reports and Analysis Centre (AUSTRAC).
Let's be clear: Australian Transaction Reports and Analysis Centre (AUSTRAC) is the Australian Transaction Reports and Analysis Centre, an Australian government agency created for the anti-money laundering and counter financing of terrorism. Bank cash transactions of $10,000 or more must be reported to this center. AUSTRAC is the Criminal Investigation Branch of the police, its main focus is to investigate money laundering, the federal police only deals with money laundering, terrorism and other crimes in these areas. It is not a financial institution or a financial regulator. AUSTRAC only requires Binance to have KYC processes so the police can monitor criminal activity and any criminal use of Binance, for example, cross-border money transfers or tax evasion. AUSTRAC has no other regulatory functions or responsibilities and is not a financial market regulator.
In order to operate in the Australian financial market, Binance Australia must be licensed by the Australian Securities and Investments Commission (ASIC) - the AFS License. InvestbyBit Pty Ltd (ABN 98 621 652 579) does not have this license.
It is probably unnecessary to raise questions as to why the supposedly legitimate and legal exchange Binance Australia (and the Binance Holdings Ltd behind it) were not willing to get the support of the Australian government at the proper financial and legal level, let's say in resolving complaints and handling disputes of their own users, why were unable and unwilling to get an AFS license? Including providing asset and force majeure insurance to Australian customers. Binance Australia only makes users look like a legitimate financial institution in Australia, but in fact - hide behind firms in offshore jurisdictions, fix and edit every month the Agreements and hide their true activities from the Australian financial regulators:
Binance Lite or Binance Australia
What is the current difference between the law firm Binance Lite and the law firm Binance Australia? Many times, there have been statements from Binance representatives in Australia that Binance Lite and Binance Australia are completely 2 different businesses of the Binance group. Binance Lite was registered in February 2019, Binance Australia was registered in August 2020 with the Australian Business Register, which suggests that they are indeed 2 different legal entities. We suggest you look at the Australian Business Registry for all Binance companies in Australia, from where you can view all firms by ABN 98 621 652 579:
- Binance Australia
- Binance Lite
- Binance Pay
- Binance X
Exactly, InvestbyBit Pty Ltd (ABN 98 621 652 579) is now responsible for the platform Binance.com/en-AU (only deposits and withdrawals of Australian dollar, all other services are provided - Binance Holdings Ltd), InvestbyBit Pty Ltd has no rights to operations with cryptocurrency:
The article of March 2019, "Cryptocurrency exchange giant Binance launches Binance Lite in Australia", announced the launch of Binance Lite as a cash to bitcoin exchange tool. Binance Lite according to Binance.com is operated by InvestbyBit, supposedly an independent subsidiary:
Global cryptocurrency exchange Binance has launched Binance Lite in Australia. Binance Lite is a cash-for-bitcoin exchange brokerage service where users can purchase bitcoins by depositing cash through a network of 1,300 supported newsstands across Australia. Binance Lite is operated by InvestbyBit, an independent subsidiary of Binance.com.
The article of 2019 "Binance: World's Largest Cryptocurrency Exchange Launches in Australia", states that Binance Australia is launching a full-service financial services platform in Australia:
This full launch follows Binance Lite, the previous exchange integration. But now it is much more comprehensive - complete with margin trading, crypto futures, cryptocurrency and other benefits.
Binance Australia CEO Jeff Yew cheered and showed all the features of the new platform, including futures and other financial instruments, on his Twitter. Allegedly, a fully licensed and regulated exchange in Australia. Now - since April 2021, all financial instruments (including futures) are removed from the platform, and by the assurance of Binance Australia employees they have never provided these services (!), because - forbidden by the Australian Securities and Investments Commission (ASIC) and the lack of AFS license.
It turns out that, about the legality and validity of Binance Australia - everyone, including CEO Jeff Yew and Chanpeng Zhao - publicly lied and deceived, just to attract users from Australia to their exchange, which had no right to provide financial services to Australian residents. Even on their own web site, in the article How to Buy Bitcoin in Australia in 2021: A Complete Guide, they state (deceive):
Like any registered financial institution and digital currency exchange in Australia, Binance Australia is subject to the same anti-money laundering and terrorist financing (AML/CTF) rules, and complies with all Australian laws.
In an interview, for the Australian publication Canstar.com.au, CEO Jeff Yew stated (deceived):
"This is important for consumers to know because it demonstrates that local crypto exchange providers are regulated and comply with all Australian standards and laws, providing consumers, retailers and institutions with greater confidence in digital currencies and a deeper legitimacy for blockchain and the crypto industry as a whole."
The number of complaints from Australian customers is growing every day, but there is no place to complain - alas. Support Binance Australia ignores almost any treatment, and to the Australian Financial Complaints Authority (AFCA) Binance Australia can not help anything for a simple reason (all functions of the exchange are provided by Binance Holdings Ltd (Cayman Islands), and Binance Australia is responsible only for the input / output of Australian dollar and all). Australian customers, like customers of Binace.com (the main unregulated casino) have no chance of having their financial claims resolved.
Binance Australia CEO Jeff Yew's emergency resignation
Not at all surprisingly, on April 23, 2021, Binance Australia CEO Jeff Yew announced his resignation. A farewell public letter from Jeff Yew is available on Linkedin.com - The CEO of Binance Australia is leaving today.
What makes this interesting is that on April 8/9, 2021, Binance Australia began changing its "Terms and Conditions", began sweeping and removing from Binance.com/en-AU all financial services and instruments other than spot trading, and 2 weeks later - CEO Jeff Yew resigns. In those 2 weeks - the web site was changed, the legal terms of cooperation were completely changed. It was announced, that all exchange functions are provided by Binance Holdings Ltd, and Binance Australia is responsible only for Aussie dollar deposit/withdrawal.
Coincidence? Or are there concerns of criminal and legal prosecution by Australian authorities, for numerous financial and legal crimes on the part of Binance? It is believed that CEO Jeff Yew realized what kind of criminality Guangying Chen (Heina Chen) and Changpeng Zhao had dragged him into - and just, ran away. According to some reports, Jeff Yew has left Australia and is in Malaysia or Taiwan, apparently to be safer from Australian law enforcement.
Conclusions on the activities of Binance in Australia
- And everything is the same as always - lies, deception, fraud, forgery, violation of financial laws in Australia in full set. Deception not only users (residents of Australia), but also the financial regulators of the country, work without licenses for financial services, everything as always and everything as in other countries, underground and illegal activities of Binance casino:
- Getting registered with AUSTRAC to be able to deposit/withdraw Australian dollars into company accounts, instead on their exchange Binance Australia started offering financial services and instruments that require a very different kind of license in Australia (AFS financial license).
- They offered these financial services and instruments in their casino publicly and illegally, just as publicly and very quickly - all the banned services and instruments were removed from Binance.com/en-AU in early April 2021.
- Following the removal of all financial services, InvestbyBit Pty Ltd denies the obvious - that the services were and have been provided to Australian residents at all.
- InvestbyBit - responsible only for the input / output of Australian dollar, all other activities of the platform (literally all) - the responsibility of the Cayman Islands offshore Binance Holdings Ltd (outside the jurisdiction of Australia).
- In all this, do not forget to advertise "an exchange that fully complies with the laws of Australia and complies with all its laws", in fact - any claims that do not relate to the input / output of money, the user must resolve the Cayman Islands Binance Holdings Ltd (outside the jurisdiction of Australia).
- SAFU fund, as spelled out in the revised Terms of Service - does not apply to residents of Australia, although its advertising is always in the first place. In fact, both Binance.com and Binance.com/en-AU (Binance Australia) take absolutely no responsibility for your financial assets or for "tricks called force majeure exchanges".
- Binance Australia is affiliated with the Australian Transaction Reports and Analysis Center (AUSTRAC) - which, only regulates Australian dollar deposits/withdrawals (not the financial market).
- Binance Australia is not licensed (AFS) by the Australian Securities and Investments Commission (ASIC) and all responsibilities except for Australian dollar deposit/withdrawal are passed on Binance Holdings Ltd (out of Australian jurisdiction).
- Binance Australia in a straight text in the "Terms of Service" states that it is not a licensee of Australian financial services, that is - Binance Holdings Ltd does not have a license for financial activity in Australia, also does not have a license for financial activity company InvestbyBit Pty Ltd.
- As part of the absence of a financial license from InvestbyBit Pty Ltd (ABN 98 621 652 579), users of Binance Australia (Australians) have no way to complain or challenge these or other actions Binance in the Australian Financial Complaints Authority (AFCA).
- In other words, InvestbyBit Pty Ltd (ABN 98,621,652,579) has the right to accept Australian dollars from Australian customers and pay them out - all within the framework of this has the status of "digital exchange". Money and its further fate, trading, all complaints, claims, disputes, even customer personal data, storage of digital assets, exchanges, accounts, wallets - responsibility - Binance Holdings Ltd (Cayman Islands, not Australia). Roughly speaking, Binance.com/en-AU is as much of a scam as Binance.com.
- All financial instruments such as futures were removed from the exchange, the terms of service were changed retroactively, and the CEO of Binance Australia Jeff Yew hastily resigned and left the country until better times. Binance is waving a "shell company" InvestbyBit Pty Ltd which is only authorized to operate with Australian dollars, and has no other connection to Binance.com/en-AU (officially and legally).
The Filing a complaint: Countries and Organizations section has been expanded to Australia and will soon make a mailing to financial regulators and law enforcement agencies in Australia with all charges and crimes of Binance Holdings Ltd and ABN 98 621 652 579 in Australia.