Financial regulator Australian Securities and Investments Commission (ASIC) cancels Binance’s derivatives trading license, the trading platform closes its division.
As of April 14, Australian users will no longer be able to modify and open new positions on Binance’s derivatives products. The exchange is asking its clients to close any existing positions in this type of financial products before April 21, 2023.
The Australian Securities and Investment Commission (ASIC) announced in February that it was conducting a “targeted review” of Binance after the exchange admitted to mistakenly referring to some retail investors as wholesalers.
ASIC Chairman Joe Longo said in a statement:
It is essential that AFS licensees classify retail and wholesale customers in accordance with the law.
Our focused review of these issues is ongoing, and one of our focuses is the extent of consumer harm.
After the exchange announced the measure yesterday, the Australian Securities and Investments Commission (ASIC) withdrew a license from Binance that allowed it to offer derivatives in the country. On the same day, Dubai’s VARA also tightened its regulations and called the exchange and its CEO, Changpeng Zhao, to account.
Oztures Trading Pty Ltd, operating under the name of Binance Australia Derivatives, held the famous license. It allowed for the issuance and creation of a market for derivatives and international exchange contracts. It also allowed the trading of specific financial products on behalf of another person and the provision of advice on specific financial products.
