The Australian Securities and Investments Commission (ASIC) has revoked the licence of Oztures Trading Pty Ltd, also known as Binance Australia Derivatives.
From April 14, 2023, clients will not be able to open or increase derivatives positions on Binance. All current derivatives positions must be closed by April 21, 2023 and all remaining open positions will be closed after that date. Moreover, Binance will remain a member of the Australian Financial Conduct Authority until April 8, 2024. It should also be noted that ASIC is currently assessing Binance's financial services operations in Australia, including the classification of retail and wholesale customers.
At the end of March this year, ASIC filed a notice of hearing under section 915c (Corporations Act 2001) to assess whether Oztures Trading Pty Ltd's AFS licence should be revoked or temporarily suspended.
In response, ASIC chairman Joe Longo noted that it is important for AFS (Australian Financial Services Licence) licensees to properly distinguish between retail and wholesale customers as required by law. Retail customers trading crypto derivatives have significant rights and consumer protections under Australian financial services legislation, including access to external dispute resolution through the Australian Financial Complaints Authority.
The Australian Securities and Investments Commission has warned crypto investors of the potential dangers associated with investing in cryptocurrency and derivatives. ASIC has established systems to protect consumers and strictly control the market.
Notably, Binance is currently under investigation by regulators from the US and Dubai. Nevertheless, they are looking to expand into new territories; they have already entered Argentina, giving customers the ability to buy and sell digital currency in Argentine pesos. However, this does not mean that everything is going perfectly for Binance, as it is still facing inspections in several countries.
