Binance Australia Derivatives AFS Licence Cancelled, Operations to Cease by April 21

The Australian Securities and Investments Commission (ASIC) has cancelled the Australian financial services (AFS) licence of Oztures Trading Pty Ltd, which trades as Binance Australia Derivatives (Binance). The move comes after Binance requested the cancellation yesterday.

Starting from April 14, clients will not be able to open new or increase existing derivatives positions with Binance. All existing positions must be closed by April 21, when Binance will close any remaining open positions. The cancellation does not affect Binance’s requirement to remain a member of the Australian Financial Complaints Authority until April 8, 2024.

ASIC has been reviewing Binance’s financial services business in Australia, focusing on retail and wholesale client classifications. The regulator issued a notice of hearing on March 29 to consider whether it should cancel or suspend Binance’s AFS licence.

ASIC Chair Joe Longo emphasised the importance of classifying retail and wholesale clients correctly and noted that retail clients trading in crypto derivatives have rights and consumer protections under Australian financial services laws. The review, which will also examine consumer harms, is ongoing.

The ASIC has repeatedly warned potential crypto users of the risks and complexities associated with crypto derivatives, particularly due to leverage. Longo highlighted ASIC’s support for a regulatory framework centred on consumer protection and market integrity, but noted that the final decision is up to the government.

As Binance Australia Derivatives winds down its operations by April 21, the company’s locally registered spot exchange will continue to operate in Australia.