- The regulator has been conducting an investigation into Binance’s businesses in Australia.
- Binance’s Australian arm has had its derivatives license revoked.
- The exchange has asked users to close all positions by April 21.
The Australian Securities and Investments Commission (ASIC) has announced the cancellation of Binance Australia’s derivatives license. This is an arm of the world’s leading cryptocurrency exchange by trading volume, Binance.
The regulator has been conducting a targeted review of the company’s financial services in Australia, including its classification of retail and wholesale clients.
ASIC Chair Joe Longo on the Matter
ASIC Chair Joe Longo commented on the situation:
“It is critically important that AFS licensees classify retail and wholesale clients in accordance with the law. Retail clients trading in crypto derivatives are afforded important rights and consumer protections under financial services laws in Australia, including access to external dispute resolution through the Australian Financial Complaints Authority… Our targeted review of these matters is ongoing, including focus on the extent of consumer harms.”
Binance Australia Has Taken Action
The press release by the ASIC states that Australian users will no longer be able to increase derivatives positions or open new positions on Binance from April 14, 2023.
The exchange has requested customers to close any existing derivatives positions before April 21. Any remaining open positions will be closed by the exchange.
The derivatives license was held by Oztures Trading Pty Ltd.
