Big Blow To Binance; ASIC Scraps Binance Australia Derivatives AFS License

Crypto News: Australia Securities & Investment Commission (ASIC) on Thursday announced that it is canceling the Australian financial services (AFS) license held by Binance registered under the operating name of Oztures Trading Pty Ltd. This development comes when the world’s largest crypto exchange is facing legal complications from U.S. Commodity Futures Trading Commission (CFTC).

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Binance To Stop Operating In AUS

ASIC stated the license cancellation comes into effect from today in a reply to a request filed by Binance. It added that after the cancellation, clients will not be able to increase derivatives positions or open new positions with crypto exchange Binance from 14 April 2023.

As per the Australian regulator, Binance needs close any existing derivative positions held by users before 21 April 2023. While, On 21 April 2023, the world’s largest crypto exchange will end all the remaining open positions.

It is important to note that the terms of the cancellation include a provision that calls off and has no effect on the requirement for Binance to pursue as a member of the Australian Financial Complaints Authority. It is ending on 8 April 2024. Read More Crypto News Here…

It added that the ASIC is conducting a “target review” of Binance’s financial services business in Australia. This includes its classification of retail and wholesale clients.

According to the authority, ASIC issued a notice of hearing under the Corporations Act 2001 on 29 March 2023. It was done to consider whether the regulator should cancel or suspend the AFS license held by Binance under the name of Oztures Trading Pty Ltd.

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Binance spokesperson in an email conveyed that

Following recent engagement with ASIC, Binance has chosen to pursue a more focused approach in Australia by winding down the Binance Australia Derivatives business. This does not affect Binance’s continued commitment to the development of the local blockchain and digital assets industry and Australians can continue to enjoy the use of our spot exchange product.

There are a small number of remaining users on Binance Australia Derivatives, approximately 100, and we have reached out to notify them of the winding down process.