Binance’s license is canceled by an Australian regulator

The derivatives license for Binance Australia has been canceled, according to a press announcement on Thursday from the Australian Securities and Investments Authority (ASIC). After Binance’s request on April 5, action was taken.

All open futures positions held by customers of Binance Australia, a subsidiary of the largest cryptocurrency exchange in the world based on trading volume, will be closed by April 21. As of yesterday, the platform only has 104 users, according to a tweet from Binance CEO Changpeng Zhao. He also said that Binance’s Australian spot cryptocurrency exchange will keep running.

Binance Australia issued a statement explaining that it was “winding down” its derivatives offering to “pursue a more concentrated strategy.”

ASIC Chairman Joseph Longo stated in the announcement that “AFS licensees must categorize retail and wholesale clients in compliance with the legislation.” Financial services regulations in Australia provide significant rights and consumer safeguards for retail consumers who trade in cryptocurrency derivatives, including access to external dispute resolution through the Australian Financial Complaints Authority.

Asserting that the government has the last say, Longo continued by saying that ASIC supports a regulatory framework for cryptocurrencies in Australia.

After filing a lawsuit against Binance and its founder, Changpeng Zhao, last week for selling unregistered derivatives instruments in the United States, the U.S. Commodities Futures Trading Commission made the move in Australia.

I am Vishal. I post articles about the cryptocurrency markets. I'm pursuing a BBA degree. My home is in Navi Mumbai, Maharashtra.I'm constantly interested in new advancements in this industry and I learn something new about it every day. I would love to share such information with you all.

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