• The Australian Securities and Investments Commission (ASIC) has cancelled Binance Australia’s derivatives license.
• Australian users will no longer be able to trade derivatives on Binance.
• Customers must close existing positions before April 21, 2023.
Binance Australia’s Derivatives License Cancelled
The ASIC has cancelled the derivatives license of Binance Australia, an arm of the world’s largest cryptocurrency exchange by trading volume. This means that Australian users will no longer be able to trade derivatives on Binance as of April 14th, 2023.
Targeted Review of Binance
The ASIC issued a notice of hearing on March 29th to consider whether the AFS license should be cancelled or suspended. The press release states that the commission is conducting a targeted review of Binance’s financial services business in Australia, including its classification of retail and wholesale clients.
Closing Existing Positions
Customers must close their existing positions by April 21st, 2023 as requested by the crypto exchange. Any remaining open positions will be closed by the exchange itself after this date if customers do not take action themselves.
Oztures Trading Pty Ltd.
The derivatives trading license was held by Oztures Trading Pty Ltd., with Chair Joe Longo stating that 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 (AFCA).
ASIC Targeted Review Ongoing
The targeted review of these matters is ongoing, with a focus on any potential consumer harms caused by this cancellation decision taken by ASIC.