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.
- The popular crypto exchange has decided to sell its business in Russia to CommEX, a crypto exchange business that was officially launched on Tuesday.
- Binance noted that it will fully exit the Russian market, and have no ongoing revenue split or any option to buy back shares in the business.
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- The company said it will be suspending its crypto-backed debit card service in the Middle East on 25 August, and in Latin America by 21 September.
- Although no reason was given for the decision, the company noted that “less than 1% of users” in those regions will be affected by the change.
- A spokesperson said the change was due to the “changing market and user needs”, and that Binance will now be refocusing its resources on its main products and long-term goals.
- Launched in March 2022, Binance Connect helped crypto businesses connect with the traditional finance system, and supported 50 cryptocurrencies and networks such as Visa and Mastercard.