Australia’s financial watchdog, the Australian Securities and Investments Commission (ASIC), has canceled the derivatives trading license of Binance Australia, a subsidiary of Binance, the world’s largest cryptocurrency exchange.
The regulator announced the cancellation on April 6th, citing concerns over Binance’s financial services business, particularly its classification of retail and wholesale clients. ASIC Chair Joe Longo stressed the importance of correctly identifying clients as retail or wholesale, as retail clients trading in crypto derivatives are afforded important rights and consumer protections under Australian financial services laws.
ASIC’s review of Binance’s activities is ongoing, with a focus on consumer harms. From April 14th, 2023, Australian users will no longer be able to open new positions or increase existing derivatives positions on Binance. The crypto exchange has asked its clients to close any existing derivatives positions before April 21st.
The exchange will close all outstanding vacancies, and Binance Australia, trading under Oztures Trading Pty Ltd’s license, will be affected. This move is consistent with regulatory measures taken against Binance in other nations like the UK, Japan, and Canada, due to increasing doubts about its adherence to regulatory requirements.