The move for Binance to wind down its Australian derivatives comes as a result of the Australian watchdogs canceling the cryptocurrency giant’s license in the country.
Binance, the crypto giant, announced that they winding down their Australia Derivatives activities due to the current engagement with the ASIC (Australian Securities and Investments Commission).
Reports of today show that the ASIC has canceled the Binance license for conducting its derivatives transactions in Australia. As of now, ASIC is reviewing the local operations of Binance.
The news comes after the cancellation of Binance Australia Derivatives by ASIC. In a press release held by the securities commission, they confirmed that they canceled the license on April 6 as per Binance’s request as of yesterday April 5.
Due to the cancellation, customers wouldn’t be able to expand derivatives positions. Moreover, Binance will need its users to close down their existing derivatives position from now until April 21.
However, the commission maintained that canceling the Binance license doesn’t have any impact on their continuing as one of the Australian Financial Complaints Authority until April 8 next year.
Reasons for the License Revocation
The Australian Securities and Investments Commission team found out that there is a little number of Australian crypto users who are grouped as “Wholesale Investors” on Binance.
According to Australian regulations, they were mandated to deliver information to the authorities about these users.
The result of the report is that Binance’s derivatives positions were closed immediately.
Back in March, the Australian Securities and Investments Commission broadcasted a hearing to check whether it should suspend or cancel the AFS license which is held by Oztures Trading Pty Ltd.
Binance Response
According to Binance, the platform is planning to follow a “highly focused approach” in Australia.
Also, the platform will be going ahead to develop the domestic registered spot exchange that Binance Australia operates.
After all, Binance Australia’s spot trading platform wasn’t affected. As a result, users can go ahead to access it.
Furthermore, Binance made an official statement to its users who are affected by the closure to notify them.
Also, it apologized to users for any inconvenience they may have suffered due to the situation.
In addition, it promised to monitor the process closely to make sure that the process was as smooth as possible.
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Australia Regulator Targeted Review for Binance
According to Joe Longo, the ASIC Chairman, the Australian securities authorities have been carrying out a targeted analysis of Binance’s financial services within the country.
The review also includes Binance’s classification of wholesale and retail clients as the law specifies.
He stated that retail clients who are trading in cryptocurrency derivatives are allowed vital rights.
He goes on to say that, retail clients are also afforded consumer protections according to the Australian financial services laws.
Also, they are allowed access to outside dispute resolution via the Australian Financial Complaints Authority.
