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Binance cancels its Australian derivatives license Binance cancels its Australian derivatives license

Binance cancels its Australian derivatives license

Binance abruptly closed the derivatives position for its Australian users in February, citing compliance with local laws.

Binance cancels its Australian derivatives license

Cover art/illustration via CryptoSlate

Oztures Trading Pty Ltd, trading as Binance Australia Derivatives, requested to cancel its derivatives license with the Australian Securities and Investments Commission (ASIC) on April 5.

According to an April 6 press statement, the request has been granted, and Binance will close all client positions by April 21.

Meanwhile, the financial regulator added that the license 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 was reviewing Binanceโ€™s operations

ASIC pointed out that it had been reviewing Binance’s financial services business in the country.

ASIC Chair Joe Longo said:

“It is critically important that AFS licensees classify retail and wholesale clients in accordance with the law. 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.”

Binance abruptly closed the derivatives position of its Australian users in February. At the time, the exchange said the closure was in compliance with local laws.

Meanwhile, the exchange faces further scrutiny in the United States after the ย Commodity Futures Trading Commission (CFTC) filed a complaint against it over allegations of regulatory violations.