28. September 2023

Binance Australia’s Derivatives License Cancelled by ASIC

• The ASIC cancelled Binance Australia’s derivatives license, a day after it received a cancellation request from the exchange.
• It was only the last week that the U.S. CFTC sued Binance for allegedly violating compliance rules.
• ASIC Chair Joe Longo said that 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.

Binance Australia Derivatives License Cancelled

The Australian Securities and Investments Commission (ASIC) has 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 and any remaining open positions will be closed soon after this date.

CFTC Sues Binance

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. This comes shortly after just last week when the U.S. Commodity Futures Trading Commission (CFTC) sued Binance for allegedly violating compliance rules.

ASIC Supports Crypto Regulatory Framework

ASIC Chair Joe Longo said: „It is critically important that AFS licensees classify retail and wholesale clients in accordance with the law.“ He further went on to say that ASIC supports a crypto regulatory framework in Australia, but that the final decision rests with the government.

Background On Binance Australia

Binance Australia, run by Oztures Trading Pty Ltd., has been providing services as a subsidiary of global cryptocurrency exchange Binance since July 2022 when its ownership changed in January 2022 and began offering derivatives under its name – Binance Australia . Recently, they were issued with notice of potential cancellation for their AFS license from ASIC following their review of business activities within their jurisdiction .

In conclusion, it is clear that both local and international regulators are cracking down on cryptocurrency exchanges like Bince due to concerns over compliance rules and consumer protections which could have an impact on how exchanges operate within certain jurisdictions globally .