Binance Australia’s derivatives license cancelled

• The ASIC has been conducting a focused evaluation of Binance’s companies in Australia.
• Binance Australia is an arm of Binance.
• Australian customers will now not be capable to commerce derivatives on Binance.

The Australian Securities and Investments Fee (ASIC) on Thursday issued a press launch saying the cancellation of Binance Australia’s derivatives license.

Binance Australia is an arm of the world’s largest cryptocurrency trade by buying and selling quantity Binance.

Focused evaluation of Binance

The ASIC issued a discover of listening to on March 29 to think about whether or not the AFS license must be cancelled or suspended.

The press launch by ASIC states that it:

“has been conducting a focused evaluation of Binance monetary companies enterprise in Australia, together with its classification of retail and wholesale shoppers.”

ASIC Chair Joe Longo mentioned:

“It’s critically necessary that AFS licensees classify retail and wholesale shoppers in accordance with the regulation. Retail shoppers buying and selling in crypto derivatives are afforded necessary rights and shopper protections beneath monetary companies legal guidelines in Australia, together with entry to exterior dispute decision by way of the Australian Monetary Complaints Authority… Our focused evaluation of those issues is ongoing, together with concentrate on the extent of shopper harms.”

Clients are to shut positions by April 21

In accordance with the ASIC press launch, Australian customers will now not be capable to enhance derivatives positions or open new positions on Binance from April 14, 2023.

The crypto trade requested motion asking their shoppers to shut any present derivatives positions earlier than April 21. Any remaining open positions might be closed by the trade.

Binance Australia’s derivatives buying and selling license was held by Oztures Buying and selling Pty Ltd.

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