HomeBinanceAustralia revokes Binance's financial services licence during investigation

Australia revokes Binance’s financial services licence during investigation

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Binance to Close Australian Derivatives Business Amid Regulatory Probe

Cryptocurrency exchange giant Binance is making headlines once again, this time announcing the closure of its Australian derivatives business. The move comes after the company voluntarily surrendered its financial services license amid a regulatory probe into its operations by the Australian Securities and Investment Commission (ASIC).

The ASIC has been conducting a targeted review of Binance since February, when it was revealed that the exchange had misclassified some retail investors as wholesale, depriving them of the higher level of regulatory protection they are entitled to. In response to a request from Binance, ASIC has now cancelled the Australian financial services license of Oztures Trading Pty Ltd, trading as Binance Australia Derivatives, with all positions set to close by April 21.

ASIC Chair Joe Longo emphasized the importance of correctly classifying clients in accordance with the law, stating that the regulator’s review of the matter is ongoing, with a focus on potential consumer harms. The financial services license allowed Binance to issue derivatives and foreign exchange contracts, but the company has decided to take a more focused approach in Australia following recent engagement with ASIC.

Despite the closure of its derivatives business, Binance reassured Australian users that its spot exchange product will not be affected. The exchange, which is the world’s largest, is facing regulatory challenges in multiple jurisdictions, including a lawsuit from the U.S. Commodities Futures Trading Commission (CFTC) alleging illegal operations.

ASIC’s statement referenced regulatory actions against Binance in the UK, Japan, Italy, and Singapore, highlighting the global scrutiny facing the cryptocurrency exchange. As the industry continues to evolve, regulators are calling for a comprehensive regulatory framework to govern cryptocurrency products and services.

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