[NEWS] Binance asks Australian Securities and Investments Commission to revoke its derivatives license

On the 6th, the Australian Securities and Investments Commission (ASIC) announced that it had revoked the license granted to the Australian derivatives division of cryptocurrency exchange Binance.

Specifically, it revoked the Australian Financial Services License (AFS) that Binance's Australian subsidiary, Oztures Trading Pty Ltd (Oztures), had obtained as Binance Australia Derivatives. According to ASIC, Binance applied for the revocation of the license on the 5th.

Australian Binance users will not be able to hold new positions from the 14th of this month, and must liquidate all positions by the 21st. Binance also said it will settle all remaining positions by the 21st.

Binance claimed that the decision to revoke the license was made as a result of discussions with ASIC.

Meanwhile, ASIC explained that it had conducted an examination of Binance's financial services business in Australia, including the classification of retail and wholesale customers. In fact, on the 29th of last month, ASIC issued a notice of hearing to Binance to consider revoking or suspending its license.

ASIC Chairman Joe Longo mentioned customer protection, saying, "It is important that AFS licensees classify retail and wholesale in accordance with the law. Customers who trade cryptocurrency derivatives are afforded important rights and consumer protections under Australia's financial services law."

He continued, "We will continue to focus on customer harm and continue to investigate."

ASIC has previously warned that cryptocurrencies are complex and risky. In particular, it has pointed out that cryptocurrency derivatives pose significant risks.

ASIC also mentioned that the U.S. Securities and Futures Trading Commission (CFTC) indicted Binance CEO Changpeng Zhao (CZ) and Binance entities on the 27th of last month.

In addition, Binance has received warnings from regulators in seven countries, including the UK Financial Supervisory Authority, the Japanese Financial Services Agency, and the Italian National Commission, justifying the investigation of the exchange.

In response to the series of announcements, CZ tweeted, "There are some misunderstandings about Binance Australia. Yesterday Binance requested the cancellation of its license. Currently, there are 104 users on the platform. We will continue to operate spot trading in Australia."

In an official statement, Binance also stated that "we will continue to take a more focused approach going forward," indicating its intention to continue providing cryptocurrency exchange services.

Reference: ASIC official announcement, Binance official announcement
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