Binance, the world’s largest cryptocurrency exchange, has faced a lot of trouble lately, and it appears that this trend continues. The latest bad news comes from Australia, where the Australian Securities and Investments Commission (ASIC) has canceled Binance Australia’s derivatives license. However, the exchange requested the revocation itself.
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ASIC has instructed Binance to close all of its clients’ derivatives positions by April 21 and not allow users to open new ones or increase their current derivatives positions from April 14. This move follows a targeted review of Binance’s financial services business in Australia. ASIC Chair Joe Longo emphasized the importance of classifying retail and wholesale clients in accordance with the law, and noted that similar reviews focusing on consumer harms are underway.
Binance’s Reaction
Binance requested the revocation of its license on April 5th, and has apologized to its impacted users for the inconvenience caused by the winding down process. The exchange noted that it will take a more focused approach in the region and confirmed that it would continue building its locally registered spot exchange.
In May 2021, the UK’s Financial Conduct Authority (FCA) banned Binance Markets Limited from conducting regulated activities in the country. Binance had to halt operations of its derivatives products in several other countries, including the European Union and Hong Kong, due to regulatory pressures. These actions have raised concerns among investors about the exchange’s ability to operate in a compliant and stable manner.
