The
Australian markets regulator, ASIC , informed on Thursday that it canceled a financial
markets license held by Binance Australia Derivatives, operated by Oztures
Trading Pty Ltd. Although at first glance, it may seem that the regulatory
hurdles of the renowned crypto exchange seem to have no end, this time, the
decision to withdraw the license was made by Binance itself.
According
to the ASIC statement, starting from 14 April 2023, it will not be possible for
clients to increase their derivatives positions or open new positions with
Binance. Additionally, the crypto exchange will require all clients to close
any existing derivative positions they may have before 21 April 2023. If they
fail to do so, the exchange that day will close all remaining trades
automatically.
The supervisor
has been executing a focused evaluation of Binance’s financial services
operations within Australia, with particular attention to the categorization of
retail and wholesale consumers. On 29 March 2023, ASIC served a hearing notice
to assess whether the AFS license held by Oztures Trading Pty Ltd should be
revoked or put on hold.
“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…
