Experts say the timing is strategic, as Binance Australia is facing an 18-day deadline to comply with the AUSTRAC audit order concerning AML failures.
Binance has appointed compliance veteran SB Seker as its new Head of Asia-Pacific. This comes as the world’s largest crypto exchange is trying to navigate regulatory challenges in the region.
The appointment comes just two weeks after Binance’s Australian arm was ordered by AUSTRAC to undergo an independent audit. The order cited “serious concerns” related to anti-money laundering controls that could expose the platform to illicit money flows.
The appointment was made just two weeks after an independent audit was ordered for Binance’s Australian arm by AUSTRAC. The audit was prompted by “serious concerns” that were raised regarding anti-money laundering controls, which are believed to have exposed the platform to illicit money flows.
The move has been viewed by industry experts as both strategic and timely, given the ongoing compliance challenges that are being faced by the exchange in Australia.
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According to James Volpe, founding director of Melbourne-based Web3 education firm uCubed, SB Seker’s background has positioned him as someone who is consistently brought into complex environments to strengthen compliance and regulatory frameworks.
“The appointment is seen as a way to reinforce Binance’s compliance strategy. It is also being viewed as a signal to both regulators and users that the company is serious about meeting standards in APAC, he stated.”
Over 20 years of cross-sector experience are brought by Seker, with roles that have included being a litigator in Australia and a central banking lawyer at the Monetary Authority of Singapore.
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Most recently, he was employed as the Senior Vice President at Crypto.com Group, a position in which global product development and regulatory matters were overseen by him.
An order was placed by AUSTRAC for Binance Australia to nominate external auditors last month. This action was taken after inadequate independent reviews and a high staff turnover were found, with 18 days having been given to comply.
Industry Expert: AUSTRAC Sets Precedent for Crypto Exchange Accountability
“AUSTRAC’s move is considered significant, and a message is being sent that crypto exchanges must be held to the same standards of responsibility and compliance as traditional financial institutions. A precedent is being set for closer scrutiny across the industry,” Volpe explained.
According to Joni Pirovich, founder of Australian crypto specialist law firm b’dasl, it has been stated that the appointment of an independent auditor is to be considered a serious but early step.
According to her, a range of tools are held by AUSTRAC to deal with findings from the auditor. These include directing Binance to have its systems remedied, enforcement action, and further audits. Also, the imposition of registration restrictions, and in the worst case, the suspension or revocation of the registration, can be used.
Seker Hire Signals Binance’s Strategic Response to Regulatory Challenges
“The hiring of Seker could well mean that the skills and experience needed for the best cooperation with AUSTRAC and the auditor are being recognized by Binance, and a best-case outcome could be realized,” Pirovich added.
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In his new role, regional operations will be overseen by Seker, and market adoption across APAC will be driven. Engagement with policymakers will also be strengthened.
A statement was made by Seker on Sunday, in which his excitement to have joined Binance was expressed. He stated that he is there to help shape a sustainable, innovative, and compliant future for the digital-asset ecosystem across the region.
