Binance Australia Derivatives business is closing down, following its recent engagement with the Australian Securities and Investments Commission (ASIC), as announced by Binance.
Despite this cancellation, ASIC maintains that Binance must continue to be a member of the Australian Financial Complaints Authority until the end of April 8, 2024.
Binance Australia will Now Take a More Focused Approach
Binance has expressed its intention to pursue a more focused approach while building on the locally registered spot exchange that is operated by Binance Australia. The spot trading platform has not been affected, and users can still access it.
“We have reached out to impacted users to notify them of the winding down process. We apologize for any inconvenience this may cause and we will be closely monitoring the process to ensure it is as seamless as possible.”
This isn’t the first time that Binance’s derivatives trading in Australia has been impacted. In September 2021, the crypto exchange halted futures, options, and leveraged tokens services for its Australian users due to regulatory concerns.
ASIC Conducting a Targeted Review of Binance in Australia
ASIC’s cancellation of Binance Australia Derivatives’ financial services license held by Oztures Trading Pty Ltd occurs following a targeted review of Binance’s financial services business in Australia, including its classification of retail and wholesale clients.
Clients will no longer be able to increase derivatives positions or open new ones with Binance following the cancellation. The crypto exchange will need users to close any existing derivative positions before April 21st.
Last month, ASIC issued a notice of hearing to consider whether it should suspend or revoke Oztures Trading Pty Ltd’s financial services license.
«It is critical 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,» said ASIC Chair Joe Longo.