After the exchange requested the action yesterday, the Australian Securities and Investments Commission canceled Binance’s financial services license in the country.
Oztures Trading Pty Ltd, trading as Binance Australia Derivatives, held the license.
From April 14, users will no longer be able to increase derivatives positions or open new positions on Binance, which will require clients to close any existing derivatives positions before April 21. The exchange will close any remaining open positions on that date.
The Australian regulator states that it “has been conducting a targeted review of Binance financial services business in Australia, including its classification of retail and wholesale clients.” ASIC issued a notice of hearing on March 29 to consider whether the AFS license should be canceled or suspended.
“It is critically important that AFS licensees classify retail and wholesale clients in accordance with the law,” ASIC Chair Joe Longo said, adding: “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.”
“Our targeted review of these matters is ongoing, including focus on the extent of consumer harms,” Longo said.
This story is developing and will be updated accordingly.
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Source: https://www.theblock.co/post/225192/binances-australia-derivatives-license-cancelled-by-regulator?utm_source=rss&utm_medium=rss