The ASIC has been conducting a targeted review of Binance’s businesses in Australia.
Binance Australia is an arm of Binance.
Australian users will no longer be able to trade derivatives on Binance.
The Australian Securities and Investments Commission (ASIC) on Thursday issued a press release announcing the cancellation of Binance Australia’s derivatives license.
Binance Australia is an arm of the world’s largest cryptocurrency exchange by trading volume Binance.
Targeted review of Binance
The ASIC issued a notice of hearing on March 29 to consider whether the AFS license should be cancelled or suspended.
The press release by ASIC states that it:
“has been conducting a targeted review of Binance financial services business in Australia, including its classification of retail and wholesale clients.”
ASIC Chair Joe Longo said:
“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.”
Customers are to close positions by April 21
According to the ASIC press release, Australian users will no longer be able to increase derivatives positions or open new positions on Binance from April 14, 2023.
The crypto exchange requested action asking their clients to close any existing derivatives positions before April 21. Any remaining open positions will be closed by the exchange.
Binance Australia’s derivatives trading license was held by Oztures Trading Pty Ltd.
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