Australia cancels licence for Binance’s derivatives business
- The group will wind down its derivatives exchange in Australia, while the spot platform will remain open, Binance Australia said in a tweet
- Binance’s group of entities have been subject to regulatory warnings and action by a number of overseas regulators in the past
The Australian Securities and Investments Commission (ASIC) has cancelled Binance’s licence for its derivatives business in the country, as it conducts a review of the group’s local operations, according to a statement on Thursday.
The group will wind down its derivatives exchange in Australia, while the spot platform will remain open, Binance Australia said in a tweet.
Binance requested to the regulator that the Australian financial services licence – held by its local entity Oztures Trading that trades as Binance Australia Derivatives – be cancelled, ASIC said in the statement.
From April 14, users will not be able to increase or open new derivatives position with Binance in Australia. By April 21, all existing derivatives positions need to be closed, according to the statement.
ASIC’s “targeted review” of Binance’s Australian business includes its classification of retail and wholesale clients, the regulator said. “It is critically important that AFS licensees classify retail and wholesale clients in accordance with the law,” said ASIC Chair Joe Longo in the statement.