Binance Australia Derivatives, which operates under the financial services license held by Oztures Trading Pty Ltd, has lost its Australian financial services license. The Australian Securities and Investments Commission (ASIC) canceled the license of Binance today in response to a request for cancellation from the company on April 10, 2023.
Clients will no longer be able to increase derivatives positions or open new positions with Binance starting from April 14, 2023. Binance will require its clients to close any existing derivative positions before April 21, 2023, and on April 21, 2023, Binance will close any remaining open positions. The license cancellation has no impact on Binance’s obligation to remain a member of the Australian Financial Complaints (AFS) Authority until April 8, 2024.
Notably, ASIC has conducted a targeted review of Binance’s financial services business in Australia, focusing on its classification of retail and wholesale clients. The agency’s Chair Joe Longo stated that it is crucial for AFS licensees to classify retail and wholesale clients according to the law.
Retail clients trading in crypto derivatives have important rights and consumer protections under financial services laws in Australia, including access to external dispute resolution through the Australian Financial Complaints Authority. Longo further stated that ASIC’s review of these matters is ongoing, with a particular emphasis on the extent of consumer harm.
Furthermore, the agency pointed out that Binance has been the subject of regulatory warnings and actions by a number of foreign regulators, including the UK Financial Conduct Authority, the Japan Financial Services Agency, the Italy Commissione Nazionale per le Societa e la Borsa (CONSOB), the Monetary Authority of Singapore, the Netherlands Central Bank (DNB), the Ontario Securities Commission, and the Thailand Securities Exchange Commission (SEC).
