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Binance Winds Down Australian Derivatives Division

AA News - Chayanika Deka 2023-04-06 19:00

Binance has announced closing the Binance Australia Derivatives business citing the recent engagement with the Australian Securities and Investments Commission (ASIC).

The agency, on the other hand, maintained that the cancellation does not affect the requirement for Binance to continue as a member of the Australian Financial Complaints Authority until the end of April 8, 2024.

Pursue a More Focused Approach

Binance said it plans to take a “more focused approach” in the country while continuing to build on the locally registered spot exchange, operated by Binance Australia. Moreover, the spot trading platform of Binance Australia has not been affected, and users can continue to access it.

Binance’s official statement on the matter read,

“We have reached out to impacted users to notify them of the winding down process. We apologize for any inconvenience this may cause and we will be closely monitoring the process to ensure it is as seamless as possible.”

This isn’t the first time that Binance’s derivatives trading in Australia was impacted. Amid regulatory concerns, the crypto exchange halted services for futures, options, and leveraged tokens for its users in the country in September 2021.

Australia Regulator Conducting Targeted Review of Binance

The news follows ASIC canceling the Australian financial services license held by Oztures Trading Pty Ltd trading as Binance Australia Derivatives. The securities agency confirmed in a press release that the license was canceled on April 6th in response to Binance requesting the action yesterday.

Clients will not be able to increase derivatives positions or open new positions with Binance following the cancelation. The crypto exchange will also require users to close any existing derivative positions before April 21st.

The Australian securities regulator has been conducting a targeted review of Binance’s financial services business in the country, including its classification of retail and wholesale clients. Last month, ASIC issued a notice of hearing to consider whether it should cancel or suspend the AFS license held by Oztures Trading Pty Ltd.

ASIC Chair Joe Longo was quoted saying,

“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.

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