Binance Australia Derivatives License Canceled by ASIC
Jessie A Ellis Apr 07, 2023 08:23
ASIC has canceled the financial services license of Binance Australia Derivatives after reviewing Binance's operations in the country. Clients must close their existing derivatives positions before April 21.
The Australian Securities and Investments Commission (ASIC) has canceled the license of Binance Australia Derivatives following a targeted review of Binance's operations in the country. Oztures Trading Pty Ltd, trading as Binance Australia Derivatives, held the Australian financial services license that has now been canceled.
The cancellation of the license means that clients of Binance Australia Derivatives will not be able to open new positions or increase derivatives positions on the platform from April 14. Furthermore, Binance is expected to close any remaining open positions on April 21, so clients are required to close any existing derivatives positions before that date.
ASIC's statement on the cancellation of the license also clarified that the cancellation does not affect Binance's obligation to continue as a member of the Australian Financial Complaints Authority until April 8, 2024.
Binance is a major cryptocurrency exchange platform that provides a wide range of services, including cryptocurrency trading, derivatives trading, and lending. The exchange has faced regulatory scrutiny from several countries, including the United States and the United Kingdom, for operating without proper licenses and complying with regulations.
The cancellation of Binance Australia Derivatives' license by ASIC comes amid increased regulatory scrutiny of cryptocurrency exchanges and their compliance with financial regulations. In recent months, several countries have tightened their regulations on cryptocurrency exchanges, including China, India, and Turkey, among others.
Moreover, Binance is not the only cryptocurrency exchange platform to face regulatory action in Australia. In 2020, the Australian Transaction Reports and Analysis Centre (AUSTRAC) initiated legal proceedings against the country's largest cryptocurrency exchange, BTC Markets, for alleged breaches of anti-money laundering laws.
In conclusion, the cancellation of Binance Australia Derivatives' license by ASIC is a significant development in the regulatory landscape of cryptocurrency exchanges in Australia. It highlights the importance of compliance with financial regulations and the need for cryptocurrency exchanges to operate within the legal framework of the countries they operate in. As the cryptocurrency market continues to grow, it is likely that more regulatory actions will be taken against cryptocurrency exchanges that do not comply with financial regulations.
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