Main page » Bitcoin News » Binance Australia Derivatives license canceled by securities regulator
Bitcoin News

Binance Australia Derivatives license canceled by securities regulator

Binance Australia Derivatives license canceled by securities regulator

The Australian Securities and Investments Commission (ASIC) has canceled the license of Binance Australia Derivatives after conducting a targeted review of the platform’s operations in the country.

The securities regulator announced on April 6 that “ASIC has today canceled the Australian financial services license held by Oztures Trading Pty Ltd trading as Binance Australia Derivatives.”

From April 14, Binance Australia Derivatives clients will be unable to increase derivatives positions or open new ones with the platform. Before April 21, the company requires all users to close any existing derivatives positions, as Binance will be closing all remaining open positions on that day.

“The terms of the cancellation include a provision that the cancellation has no effect on the requirement for Binance to continue as a member of the Australian Financial Complaints Authority until the end of April 8, 2024,” stated ASIC.

ASIC also stated that it has been conducting a targeted review of Binance’s financial services business in Australia, including its classification of retail and wholesale clients. The official announced that the review was related to compliance with the classification of retail and wholesale clients:

“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.”

ASIC mentioned that the global Binance exchange and its CEO, Changpeng “CZ” Zhao, are currently facing a lawsuit from the United States Commodity Futures Trading Commission. The regulator also noted that various Binance group entities had been subject to other regulatory warnings and action worldwide, referring to a series of warnings and investigations initiated by global regulators against Binance in 2021.

Binance has chosen to shut down Binance Australia Derivatives following its recent engagement with ASIC and pursue a “more focused approach” in Australia, a spokesperson for Binance told Cointelegraph. The representative emphasized that spot trading on Binance will still be available for Australian residents:

“Australians can continue to enjoy the use of our spot exchange product. There are a small number of remaining users on Binance Australia Derivatives, approximately 100, and we have reached out to notify them of the winding down process.”

On the heels of abrupt notifications sent by Binance Australia Derivatives to its users in late February saying it was beginning to close certain derivatives positions and accounts, local regulators launched an investigation, aiming to conduct a “targeted review” of Binance’s local derivatives operations.