Australia cancels crypto exchange Binance’s derivatives license amid regulatory review

ambcrypto.com:

The Australian Securities and Investments Commission (ASIC) cancelled Binance Australia’s derivatives license amid a regulatory probe into the exchange. The decision was made on 6 April, a day after the ASIC received a cancellation request from Binance.

It means that the exchange will no longer be able to provide derivatives trading services in Australia. Customers of Binance Australia must close any existing derivative positions by 21 April. Any remaining open positions will be closed after this date.

Read more about it here: https://t.co/yMqiqPCO0F

— Binance Australia (@Binance_AUS) April 6, 2023

It is important to note that these cancellation terms include a provision that allows Binance to continue to be a member of the Australian Financial Complaints Authority until April 2024.

The scrapping of license comes as ASIC has been conducting a targeted review of Binance’s 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.”

Longo further went on to say that ASIC supports a crypto regulatory framework in Australia, but that the final decision rests with the government.

Binance Australia, run by Oztures Trading Pty Ltd., has been providing services as a subsidiary of the