Breaking News: Binance Australia’s Derivatives License Revoked by Regulator

The recent news of Binance Australia’s derivatives license being revoked by the ASIC has once again brought the issue of regulatory compliance to the forefront of the crypto industry. The decision by ASIC to cancel Binance Australia’s derivatives license has been made after a targeted review of Binance’s businesses. According to ASIC Chair Joe Longo, it is important that AFS licensees classify retail and wholesale clients in accordance with the law.

Retail clients trading in crypto derivatives are afforded important rights and consumer protections under financial services laws in Australia, including access to external dispute resolution through the Australian Financial Complaints Authority. The cancellation of Binance Australia’s derivatives license will require the exchange to close all client’s open derivatives positions by April 21, 2023.

The recent regulatory actions against Binance Australia are not the first for the exchange, with the US CFTC filing a lawsuit against the exchange over allegedly operating derivatives products in America. Binance Australia’s decision to wind down its derivatives product to pursue a more focused approach is also indicative of the impact of regulatory scrutiny on the exchange’s operations.

In light of the regulatory actions against Binance, it is important for all crypto exchanges to prioritize regulatory compliance. Regulatory compliance is not only important for the protection of clients but also for the long-term sustainability of the crypto industry. The regulatory framework for crypto in Australia is still evolving, and it is important for exchanges to keep up with the changing regulatory landscape.

While ASIC has canceled Binance Australia’s derivatives license, ASIC Chair Joe Longo has emphasized that ASIC supports a regulatory framework for crypto in Australia, insisting that the final decision lies with the government. The cancellation of Binance Australia’s derivatives license is a reminder that regulatory compliance is not only necessary but also essential for the long-term growth and success of the crypto industry.