- The Australian Financial Complaints Authority (ASIC) canceled Binance’s derivatives license.
- The agency said that it’s been running a “targeted review” of Binance’s financial services business in Australia.
- Users have two weeks to close their positions.
The crypto industry has been experiencing one of the worst bear markets in its history. Not only have prices plummeted significantly, but regulators worldwide are also actively targetting crypto companies.
One crypto company that has faced regulatory pressures is Binance, which has just lost its derivatives license in Australia.
Binance Australia Loses Derivatives License
Australian Financial Complaints Authority (ASIC) announced on Thursday that Binance, the largest centralized cryptocurrency exchange in the world, can no longer run its derivatives business in the country.
That’s because the ASIC, after running a “targeted review” of Binance’s financial services business in Australia, has canceled the Australian financial services (AFS) license held by Oztures Trading Pty Ltd trading as Binance Australia Derivatives.
From 14 April 2023, Binance clients will be unable to increase derivatives positions or open new positions with Binance. On 21 April 2023, Binance will close any remaining open positions.
The ASIC noted that the review is ongoing and looks at various aspects of Binance’s business, including its classification of retail and wholesale clients.
At the same time, Binance CEO Changpeng Zhao responded to the news by saying that Binance itself asked for the license to be canceled.
The cancelation of Binance’s license comes amid heightened regulatory attention to Binance. In the U.S., the Commodity Futures Trading Commission (CFTC) charged Binance and Zhao with evading U.S. law a few weeks ago.
On the Flipside
- Australians can still use Binance’s spot exchange product.
Why You Should Care
Binance is the largest cryptocurrency exchange in the world. The fact that Australian regulators decided to cancel the exchange’s derivatives license means that there must be some violation on Binance’s part.
Read more about Binance’s thoughts on crypto regulation:
Binance’s Compliance Chief: Crypto Treated Unfairly Compared to TradFi
Read more about Coinbase bringing soulbound tokens to its Base network:
Coinbase Brings Soulbound Tokens to Base Network: What Does It Mean?