Crypto Exchange Binance Shuts Down Derivatives Offering in Australia

• In response to Binance’s inquiry, ASIC confirmed the termination of the licence.
• Users who have derivative contracts are required to terminate their positions by April 21.

On Thursday, the Australian Securities and Investments Commission (ASIC) said that it would be revoking Binance’s Australian financial services (AFS) licence, which had been issued to the company under the name Oztures Trading Pty Ltd.

In response to Binance’s request for cancellation, ASIC confirmed that the termination of the licence will take effect as of today. When the cancellation takes effect on April 14, 2023, customers will no longer be allowed to increase or establish new derivatives positions on the cryptocurrency exchange Binance.

Binance users who have derivative contracts are required by the Australian authorities to terminate their positions by April 21, 2023. Nevertheless, all open positions on the biggest cryptocurrency exchange in the world will be closed on April 21st, 2023.

Does Not Affect Spot Exchange Product

Moreover, Binance’s obligation to continue as a member of the Australian Financial Complaints Authority (AFCA) is terminated and unaffected by the cancellation’s conditions. The last day is April 8, 2024. It was also said that Binance’s Australian financial services company is under “target review” by the ASIC. This categorization encompasses both its retail and wholesale clientele.

A representative for Binance said in an email that

“Following recent engagement with ASIC, Binance has chosen to pursue a more focused approach in Australia by winding down the Binance Australia Derivatives business. This does not affect Binance’s continued commitment to the development of the local blockchain and digital assets industry and Australians can continue to enjoy the use of our spot exchange product.”

The authority reports that on March 29, 2023, ASIC served a notice of hearing under the Companies Act of 2001. The purpose of the investigation was to determine whether Binance’s AFS licence, which is held by Oztures Trading Pty Ltd, should be revoked or suspended.