Australian regulator cancelled Binance’s derivatives licence

The Australian Securities & Investments Commission (ASIC) has cancelled Oztures Trading’s derivatives licence. Oztures Trading is the local branch of Binance, operating under the Binance Australia Derivatives brand.

Australian regulator cancelled Binance's derivatives licence

In accordance with the ASIC order, from April 14, the exchange’s clients in Australia will no longer be able to invest in derivatives, as well as create new trading positions. By April 21, users must close all remaining trading positions, otherwise the exchange will close them compulsorily after this date.

It is emphasised that the exchange had been under review by the ASIC since February. This review includes the check of the classification of the exchange’s wholesale and retail customers.

Violations of any rules by the exchange have not yet been reported, but the Australian regulator mentioned a lawsuit filed against Binance by the US Commodity Futures Trading Commission (CFTC). According to the lawsuit, the company is accused of violating the US laws, manipulating the market and refusing to cooperate with the authorities. In addition, the US authorities have banned the issue of BUSD tokens.

The Australian Commission also noted that the exchange was warned by regulators in Japan, Singapore, the UK, Italy, Canada, Thailand and the Netherlands.

According to the representative of Binance, the company decided to take a more focused approach to business in Australia and stop derivatives trading after the recent engagement with ASIC. The spokesperson also said that Binance Australia Derivatives platform still has about a hundred customers. All of them received a notification about the closure of derivatives trading. Spot trading in Australia will still be available.

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