ASIC has decided to revoke the exchange’s derivatives licence after reviewing its operations. As a result, the platform will be unable to conduct derivatives-based digital currency transactions in the country. Significantly, the licence termination takes effect “in response to a cancellation request received by Binance yesterday.”
ASIC requires that all platform derivatives transactions end on or before April 14. Derivatives traders are also expected to cancel all holdings held prior to April 21. This order came shortly after the exchange’s derivatives licence was terminated.
Binance Australia has long been a member of the country’s financial board, the Australian Financial Complaints Authority (AFCA). Significantly, the commision stated unequivocally that it would not remove the exchange from its position as an AFCA member. According to ASIC, this order will be in effect until April 4, 2024.
According to ASIC Chair Joe Longo, the evaluation aimed to defend retail and wholesale clients’ rights under the country’s financial services regulations. The commission’s main issue is that Binance Global and its CEO, Changpeng Zhao, have had a few run-ins with authorities over the years.
The Binance platform’s derivative area primarily allows dealers and investors to exchange various cryptocurrencies in the market. Nonetheless, people should be wary of losing their money.
Yet, the commission’s decision may be a reaction to the notifications Binance sent to its users around the end of February 2023. Binance informed clients that it would begin cancelling certain derivatives holdings and accounts.
With ASIC’s action, Binance has decided to shift its focus to other operations and services, abandoning the Binance Australia Derivatives. Nonetheless, for the time being, the exchange will continue to offer spot trading on the platform to Australian citizens.
