ASIC revokes Binance Australia’s financial services license

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Key takeaways:

  • Binance has decided to shut down the Binance Australia Derivatives business after the latest interaction with ASIC.
  • Australian customers could still use Binance’s spot exchange product, according to a company spokesperson.

Due to recent interactions with the Australian Securities and Investments Commission, Binance has announced the closure of its Binance Australia Derivatives company. (ASIC). The operating licence for Binance’s derivatives company will be revoked, according to an announcement made today by Australia’s securities regulator.

Joe Longo, the chairman of ASIC, said on Thursday that “ASIC has been evaluating the Binance operations for some time and had additional involvement planned, which may have caused Binance to take this action.”

A representative for Binance stated that “roughly 100” derivatives clients were still active. Australian customers will no longer be able to purchase extremely complex derivative products from Binance starting on April 14. By April 21, all existing consumers must close their positions.

However,  according to a blog post published by Binance, the exchange’s more concentrated strategy in Australia will keep advancing the locally registered spot exchange. (operated by Binance Australia).  The spot trading platform of Binance Australia is still available to local customers, who can use it as before. 

This has no impact on Binance’s ongoing dedication to the growth of the regional blockchain and digital asset industries. 

It’s almost like increased  regulatory monitoring and legal troubles for Binance does not seem to end.  Just a few days back, the United Arab Emirates made official requests for more details on Binance’s organisational framework and auditing procedures.  The exchange also reportedly witnessed a $850M in Withdrawals After CFTC Indicted CZ Over US Regulatory Violations.

According to Australian financial services legislation, retail clients trading in cryptocurrency derivatives are given significant rights and consumer protections, including access to external conflict resolution through the Australian Financial Complaints Authority, according to a statement from ASIC Chair Joe Longo.    

It is important to note that ASIC does not control many cryptocurrency products and services. Users of cryptocurrencies should be aware that they could lose all of their money, more so than with other kinds of investments. 

The top securities regulator in Australia has also had a tense relationship with the cryptocurrency sector lately, pursuing enforcement proceedings against several companies it claims have broken Australian law.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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