Starting April 14th, customers "will not be able to increase derivatives positions or open new positions with Binance."
The license of Binance Australia Derivatives has been revoked by the Australian Securities and Investments Commission (ASIC) after a thorough investigation into Binance's operations in the country.
According to the press release shared by ASIC on April 6th, the license was canceled for Oztures Trading Pty Ltd, which is trading as Binance Australia Derivatives (Binance).
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In the announcement, ASIC noted that starting April 14th, customers "will not be able to increase derivatives positions or open new positions with Binance." On top of that, until April 21st, "Binance will require clients to close any existing derivative positions."
The Australian Securities and Investments Commission (ASIC) highlighted that license cancelation does not affect Binance's membership with the Australian Financial Complaints Authority.
The terms of the cancellation include a provision that the cancellation does not affect the requirement for Binance to continue as a member of the Australian Financial Complaints Authority until the end of April 8th, 2024.
ASIC Chair Joe Longo explained that the review was related to compliance with the classification of retail and wholesale clients, stating:
Retail clients trading in crypto derivatives are afforded important rights and consumer protections under financial services laws in Australia, including access to external dispute resolution through the Australian Financial Complaints Authority.
According to a Binance spokesperson, the company has decided to adopt a "more focused approach" in Australia by closing Binance Australia Derivatives. The representative stressed that spot trading on Binance would still be accessible to Australian residents, adding:
Australians can continue to enjoy the use of our spot exchange product. There are a small number of remaining users on Binance Australia Derivatives, approximately 100, and we have reached out to notify them of the winding down process.
This news follows Binance Australia Derivatives' sudden notifications to its users in late February, when they informed customers about the closure of certain derivatives positions and accounts.
It is worth noting that crypto exchange Binance and its CEO Changpeng "CZ" Zhao were recently sued by the United States Commodity Futures Trading Commission (CFTC) for allegedly making several trading violations.