Australian regulatory agency ASIC was conducting a review of the cryptocurrency exchange Binance, including the classification of retail and wholesale customers.
Cryptocurrency Exchange Binance's AFS License Revoked
On March 29, 2023, ASIC acquired Oztures Trading Pty Ltd. issued a notice of hearing to consider whether the AFS (Australian financial services) license owned by ASIC should be revoked or suspended.
The license revocation took place today in response to a cancellation request received from Binance yesterday.
After cancellation:
Effective April 14, 2023, customers will not be able to increase their derivative positions or open new positions with Binance.
Binance will require clients to close their existing derivative positions before April 21, 2023.
On April 21, 2023, Binance will close all remaining open positions.
Among the terms of the cancellation is a provision that the cancellation will have no effect on the requirement that Binance continue as a member of the Australian Financial Complaints Authority until the end of April 8, 2024.
“It is critical that AFS licensees legally categorize individual and wholesale customers,” said ASIC President Joe Longo. said.
Retail customers trading crypto derivatives are provided with substantial rights and consumer protections under Australian financial services laws, including access to external dispute resolution through the Australian Financial Complaints Authority.
“Our targeted review of these issues continues, including focusing on the extent of consumer harms,” Longo said.
While Binance did not make a statement on the subject, Bitcoin (BTC) was trading at $ 27,900 at the time of this writing.
*Not investment advice.
