The Australian Securities and Investments Commission (ASIC) has nullified Binance‘s derivatives license, compelling the world’s biggest crypto exchange to liquidate all extant positions by April 21.
The regulatory body’s decision emerges in response to a meticulous examination of Binance’s operations.
ASIC has voiced apprehensions regarding the firm’s classification of retail and wholesale clients, which bears considerable consequences for consumer safeguards in Australia.
ASIC Chair Joe Longo underscored the paramountcy of proper client classification, as retail clients engaging in crypto derivatives trading are entitled to rights and protections according to Australia’s financial services legislation.
Longo further accentuated ASIC’s endorsement of a regulatory framework for crypto in Australia. However, he conceded that the ultimate decision rests with the government.
Following these events, Binance Australia announced its intention to “wind down” its derivatives product to “pursue a more focused approach.”
Binance beset by regulatory challenges
Binance’s recent travails extend beyond Australian shores as the exchange faces mounting scrutiny from regulators worldwide.
A few days ago, the US Commodity Futures Trading Commission (CFTC) instituted a lawsuit against the exchange, accusing it of operating derivatives products in America without authorization.
This development follows a spate of regulatory warnings and actions from a litany of international regulators, encompassing the UK Financial Conduct Authority, Japan Financial Services Agency, and the Monetary Authority of Singapore.
Navigating the future of crypto regulation
ASIC’s revocation of Binance Australia’s derivatives license directs attention to the future trajectory of cryptocurrency regulation in Australia and across the globe.
As regulatory bodies intensify their focus on crypto enterprises, the evolving landscape presents myriad challenges and uncertainties for the millions of users and investors entwined in this burgeoning industry.
Source: https://crypto.news/binance-australias-derivatives-license-revoked-amid-regulatory-intervention/