Binance will close its Australian derivatives business after losing a financial services license on Thursday after a regulatory examination.
In February, Binance admitted to misclassifying certain retail investors as wholesale, prompting ASIC to launch a “targeted assessment” of the company.
Retail investors get more regulatory protection.
Oztures Trading Pty Ltd, business as Binance Australia Derivatives (Binance), requested that ASIC terminate its Australian financial services license on Thursday.
All positions close on April 21.
“It is extremely important that AFS licensees categorise retail and wholesale clients in conformity with the legislation,” ASIC Chair Joe Longo said.
Our specific evaluation of these concerns includes assessing consumer damages.
Binance’s financial services license allowed derivatives and foreign currency contracts.
Longo said ASIC supports a “regulatory framework” for the asset class despite not regulating certain bitcoin goods and services.
After a “recent engagement with ASIC,” Binance announced a “more concentrated strategy” in Australia.
It stated that the closure would not affect Australian spot exchange users.
The largest cryptocurrency exchange faces global regulatory action and inquiries. The CFTC sued Binance and its founder Changpeng Zhao last month for running an “illegal” exchange.
ASIC cited the CFTC suit, UK, Japan, Italy, and Singapore regulatory activities.
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