The financial services license held by Binance Australia Derivatives, a division of cryptocurrency exchange Binance, has been terminated by the Australian Securities & Investments Commission (ASIC). The termination was carried out in accordance with Binance’s own request.
We have cancelled the Australian financial services licence held by Oztures Trading Pty Ltd, trading as Binance Australia Derivatives https://t.co/lwqfRanBc2 #crypto #binance pic.twitter.com/DcmX4xdhpD
— ASIC Media (@asicmedia) April 6, 2023
The license allowed Binance’s Oztures Trading Pty Ltd to issue and operate a market in derivative and foreign exchange contracts. However, the ASIC’s decision means that clients can no longer expand or open new positions from April 14, 2023.
Binance has requested its customers to close derivative positions before April 21, 2023. Any positions that remain by that date will be closed by Binance.
The ASIC’s move comes after it previously probed Binance’s criteria for separating client types. According to reports, the authority was worried that Binance’s systems might not have been sufficient to guarantee that retail clients received different treatment than most clients.
Rising Concerns
In recent months, Binance has come under governmental examination from a number of nations. The UK’s Financial Conduct Authority (FCA) has prohibited Binance from conducting business there. The FCA claimed that Binance presented a danger to customers and could not be successfully supervised in the UK.
Binance is also being looked into by the Commodity Futures Trading Commission in the US. Apparently, the regulator is looking into whether Binance permitted US residents to trade derivatives goods that are not CFTC-registered.
Overall, Binance has experienced a string of regulatory failures, the most recent of which is the ASIC’s move to revoke its license in Australia. How this will impact Binance’s activities in other nations is yet to be determined.
