The derivatives license of Binance Australia, the Australian arm of the world’s largest cryptocurrency exchange, has been revoked by the Australian Securities and Investment Commission (ASIC). The decision was announced in a press release on Thursday, and ASIC ordered the exchange to close all open derivatives positions held by its clients by April 21. Here are the details…
Binance loses derivatives license
Binance Australia, the Australian arm of the world’s largest crypto exchange by trading volume, has been ordered by the regulator to close all clients’ open derivatives positions by April 21. The press release states that ASIC is conducting a targeted review of Binance’s business. ASIC said it was conducting a targeted review of Binance’s business and found that the exchange failed to legally classify individual and large customers.
Individual customers transacting in cryptocurrency derivatives are provided with substantial rights and consumer protections under financial services laws in Australia, including access to external dispute resolution through the Australian Financial Complaints Authority. ASIC President Joe Longo said it was “critically important” for licensees to comply with the law, adding that ASIC supports a regulatory framework for crypto in Australia, but the final decision rests with the government. The following statements were included in the President’s statement:
It is critical for AFS licensees to categorize individual and wholesale customers in accordance with the law. Individual customers trading crypto derivatives are provided with substantial rights and consumer protections under financial services laws in Australia, including access to external dispute resolution through the Australian Financial Complaints Authority.
The exchange has more than 1 million users
Longo added that ASIC supports a regulatory framework for crypto in Australia and insists that the final decision rests with the government. Binance was in trouble with regulators last week. cryptocoin.com As we have also reported, the US Commodity Futures Trading Commission (CFTC) has filed a lawsuit against the stock market for allegedly operating derivatives products in the US. Previously, Binance was also banned from operating in the UK by the Financial Conduct Authority (FCA) and faced warnings from regulators in Japan, Germany and Thailand.
Binance Australia said in a statement that it was “terminating” derivatives products to “take a more focused approach”. Leigh Travers, the former CEO of Binance Australia, who resigned from his post on March 10, said in an interview with the Sydney Morning Herald in December that the exchange has more than one million users. ASIC’s decision to revoke Binance Australia’s derivatives license will likely be seen as a major blow to the exchange’s operations in the country. However, it is not yet clear whether this move will have broader implications for Binance’s global operations or the broader cryptocurrency industry.
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