Exchange News- Binance, will be subject to a review of its local crypto derivatives operations as per ASIC.
- The ASIC prohibits the general public from participating in derivatives trading.
In addition to challenges with U.S. regulators. The biggest cryptocurrency exchange Binance has also encountered difficulties with Australia’s Securities and Investments Commission (ASIC). Many traders were incorrectly labelled “wholesale investors,” and on Thursday, Binance liquidated their derivatives accounts. Then, the company announced its intention to compensate those consumers who were negatively impacted.
According to the ASIC, the world’s largest cryptocurrency exchange, Binance, will be subject to a detailed review of its local crypto derivatives operations. According to a statement made by the regulator on Friday. One of the factors being looked at is how Binance classifies its “retail clients and wholesale clients.”
Extensive Investigation Underway
The Australian Securities and Investments Commission prohibits the general public from participating in derivatives trading. So, Binance requires its clients to prove they are institutional investors before they may trade futures. Recent activities by Binance, however, have caught the attention of Australian authorities, who are now conducting extensive investigations into the exchange’s Know Your Customer (KYC) and client onboarding procedures.
Reportedly led by Changpeng Zhao, the trading platform has not yet notified ASIC of these issues despite being required to do so under the terms of its Australian financial services license. Zhao was cited on the matter as stating, “we will review the situation and see if/when we can re-open futures offerings in Australia.”
One year after the FTX exchange’s collapse, authorities are keeping a closer eye on the cryptocurrency market. This has propelled the most prominent digital asset exchange to the limelight. Binance’s worldwide activities and its platform in the United States are now being investigated by many regulatory organizations.
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Source: https://thenewscrypto.com/australian-regulators-to-review-binances-local-derivatives-operations/