Key Takeaways
- Binance has terminated its financial services license in Australia.
- Australian residents have until April 21 to close open positions.
- Binance CEO Changpeng Zhao indicated that only 104 clients will be affected by the change.
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Binance’s Australian financial services license has been terminated, meaning Australian residents will no longer be able to open derivatives positions on the exchange.
104 Users Affected
Binance has its hands full with regulators around the world.
The Australian Securities and Investments Commission Office has partnered now that leading global crypto exchange Binance will no longer allow Australian clients to hold trade crypto derivatives.
According to the press release, ASIC received yesterday a request from Oztures Trading Pty Ltd-trading as Binance Australia Derivatives-to terminate its Australian financial services license. The decision to end derivatives trading for Australian residents was made by Binance itself.
Starting April 14, Australian residents will no longer be able to open new derivatives positions on the platform, or add to existing ones. All remaining open positions will be closed on Binance on April 21.
ASIC has indicated that it is conducting a “targeted review” of Binance’s business in Australia. “It is vital that AFS licensees classify retail and wholesale clients in accordance with the law,” said ASIC chief Joe Longo. “Retail clients trading in crypto derivatives are afforded important consumer rights and protections under Australian financial services laws, including access to external dispute resolution through Australian Financial Complaints Authority.”
Binance stipulated, in terms of its license cancellation, for the decision to have no effect on the exchange’s requirement to continue as a member of the Australian Financial Complaints Authority until April 2024.
Binance CEO Changpeng “CZ” Zhao taken on Twitter to indicate that the loss of Binance’s license will only affect 104 users, and that the decision will not affect Binance’s Australian spot trading platform.
Disclosure: At the time of writing, the author of this piece owns BTC, ETH, and other crypto assets.
