Binance’s Australian derivatives licenses have been revoked by the Australian Securities and Investments Commission at the request of the cryptocurrency exchanges themselves. Said After regulators launched a “targeted review of Binance” on Thursday, February.
From April 14th, derivatives clients on Binance in Australia will no longer be able to open or increase existing trading positions. Binance must close all remaining trading positions by April 21, according to regulators.
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ASIC Chairman Joe Longo said: “A targeted review of these issues is underway, including a focus on the extent of harm to consumers.
A Binance spokesperson said, “Following our recent engagement with ASIC, Binance has chosen to pursue a more focused approach in Australia and has chosen to wind down Binance Australia’s derivatives business.” He added that there are “about 100” derivatives clients remaining.
Binance’s exchange token fell just under 0.5% Thursday morning.
Regulatory scrutiny of Binance has increased in recent weeks and months. The U.S. Commodity Futures Trading Commission has filed a broad complaint against the cryptocurrency exchange and its founder Changpeng Zhao, but at the heart of it lies his anti-laundering and know-your-customer compliance. is the problem. The complaint details how commissions from derivatives trading have generated highly lucrative earnings for Binance.
Binance’s market share has fallen by 16% in recent weeks, but it remains the world’s most dominant exchange in terms of trading volume, according to research firm Kaiko.
An apparently inadvertent compliance issue led to an investigation by Australian regulators. Binance conducts business worldwide using a number of subsidiaries including Oztures Trading Pty Ltd in Australia.
Binance revealed in February that a “small minority” of its Australian clients were classified as “wholesale investors”, a trading classification for experienced investors with access to more sophisticated financial instruments. is a designation roughly analogous to the US “accredited investor” category.
Binance’s wealthy investors have become a concern for regulators around the world. In the U.S., the CFTC has accused Binance of offering preferential treatment to its wealthiest customers and helping it evade U.S. regulations by trading through foreign paper companies and virtual private networks.
CNBC previously reported on similar techniques used by Binance customers in mainland China, encouraged by staff and volunteers.
The increased focus on Binance’s practices comes as US regulators crack down on centralized exchanges more broadly.The Securities and Exchange Commission recently warned coin base It could soon face potential securities lawsuits, the people said.
Australia’s top securities regulator has had a difficult relationship with the cryptocurrency industry in recent months, seeking enforcement action against several companies the regulator says have violated Australian law.
The ASIC release said, “Binance Group entities are subject to regulatory warnings and actions from a number of foreign regulators.