Binance announced the closure of the Binance Australia Derivatives business citing the recent engagement with the Australian Securities and Investments Commission (ASIC).
The agency, on the other hand, maintained that the cancellation does not affect Binance’s obligation to remain a member of the Australian Financial Complaints Authority until the end of April 8, 2024.
Pursue a more targeted approach
Binance said it plans to take a “more targeted approach” in the country while continuing to rely on the locally registered spot exchange operated by Binance Australia. Additionally, Binance Australia’s spot trading platform was unaffected and users can continue to access it.
Binance Official statement read about it,
“We have contacted affected users to inform them of the liquidation process. We apologize for any inconvenience this may cause and will be monitoring the process closely to ensure it is as seamless as possible.
This is not the first time Binance’s derivatives trading in Australia has been impacted. Amid regulatory concerns, the crypto exchange halted futures, options, and leveraged token services for its users in the country in September 2021.
Australian Regulator Conducts Targeted Binance Review
The news follows ASIC’s cancellation of the Australian financial services license held by Oztures Trading Pty Ltd as Binance Australia Derivatives. securities agency confirmed in a press release that the license was revoked on April 6 in response to Binance’s request yesterday.
Clients will not be able to increase derivatives positions or open new positions with Binance after the cancellation. The crypto exchange will also require users to close all existing derivative positions by April 21.
Australia’s securities regulator conducted a targeted review of Binance’s financial services business in the country, including its classification of retail and wholesale customers. Last month, ASIC issued a notice of hearing to determine whether to revoke or suspend the AFS license held by Oztures Trading Pty Ltd.
ASIC President Joe Longo reportedly said:
“It is extremely important that AFS licensees classify retail and wholesale customers in accordance with the law. Retail clients who trade in crypto derivatives benefit from important rights and consumer protections under Australia’s financial services laws, including access to external dispute resolution through the Australian Financial Complaints Authority.
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