Binance Australia’s Derivatives License Cancelled by Australian Securities Regulator
- The Australian Securities and Investment Commission (ASIC) has cancelled Binance Australia’s derivatives license after conducting a targeted review of its business in the country.
- Starting 14 April clients will no longer be able to open new derivatives positions on the exchange, and all open positions will be closed on 21 April.
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The Australian Securities and Investment Commission (ASIC) has cancelled Binance Australia’s derivatives license after the exchange requested the action, ASIC said in a press release on 6 April.
According to the announcement, clients of Oztures Trading Pty Ltd — which was trading as Binance Australia Derivatives — will no longer be able to increase their derivatives positions or open new positions starting 14 April. Clients were also advised to close any existing derivatives positions on Binance Australia before 21 April, as the exchange would close all remaining open positions on that date.
ASIC noted that the cancellation of the derivatives license had no effect on the requirement for Binance to continue as a member of the Australian Financial Compliants Authority until the end of 8 April, 2024. The Australian securities regulator also explained that the action was taken after conducting a targeted review of Binance’s business in the country, including its classification of retail and wholesale clients. ASIC Chair Joe Longo said in a statement:
“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.”
In its own blog post, Binance Australia said it was “winding down” its derivatives product in Australia to “pursue a more focused approach” in the country. The exchange also noted that its users can “continue to access and enjoy Binance Australia’s spot trading platform”, and that it is still committed to the development of the local blockchain and digital assets industry.
The news came shortly after the United States Commodities Futures Trading Commission (CFTC) filed a lawsuit against Binance and its CEO Changpeng “CZ” Zhao, alleging that they had violated multiple regulations of the Commodity Exchange Act.
- Users of Binance NFT can now use select blue-chip NFT collections as collateral to take out cryptocurrency loans.
- The platform will initially support only loans in ETH, and NFT collections Bored Ape Yacht Club, Mutant Ape Yacht Club, Azuki, and Doodles.
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- The Securities Commission Malaysia ordered Huobi Global to stop all of its activities in the country as it was not registered with the regulator, and was operating illegally.
- The exchange was also directed to disable its website and mobile applications, as well as cease all advertising of its products and services in the country.
- The crypto exchange blamed the issue on a decision made by its third party payments provider in Australia, noting that it is now looking for a new partner in the country.
- Binance Australia assured users that AUD withdrawals are still available, and that they can continue to buy and sell crypto using debit/credit cards and its P2P marketplace.