Crypto users in Australia witnessed the closure of Binance Australia Derivatives after Australian security regulators terminated Binance’s AFS licence.
The operating licence of Binance’s derivatives business will be revoked before the end of April, according to an official announcement from the Australia Securities and Investments Commission (ASIC).
Australia’s Financial Services (AFS) licence is held by Oztures Trading Pty Ltd, Binance Australia Derivatives business, which provides the country’s crypto users with access to over-the-counter (OTC) derivatives products.
Following the cancellation of the licence, crypto users will be prohibited from taking derivative positions or any new positions with Binance from April 14, 2023. Furthermore, clients need to close all open positions by April 21 or else Binance will close it on April 21.
In accordance with section 915C of the Corporation Act of 2001, ASIC conducted a proceeding on 29 March 2023, to determine the revocation of the AFS licence of Oztures Trading Pty Ltd.
However, the cancellation has no effect on the requirement for Binance to continue as a member of the Australian Financial Complaints Authority until the end of 8 April 2024.
ASIC is conducting a targeted review of Binance financial services business in Australia, including its classification of retail and wholesale clients. Joe Longo, the head of ASIC, stated, “It is critically important that AFS licensees classify retail and wholesale clients in accordance with the law.”
ASIC stressed the high-risk factors in leveraged derivatives trading for retail and wholesale clients, and the move was initiated to protect crypto users from huge losses. Furthermore, the ASIC chief said, “Our targeted review of these matters is ongoing, including focus on the extent of consumer harms.”
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