On Thursday, the Australian Securities and Investment Commission confirmed the cancellation Binance derivatives license. According to the Australian regulator, its decision to cancel the license was based on the request by the crypto exchange. The cancellation, as announced, will take effect from April 14, 2023.
Certainly, the cancellation means customers of the exchange in the country won’t be able to increase their derivatives positions or open new position. Also, Binance clients are required to close any existing derivatives positions before April 21st, 2023. According to statement, the exchange is expected to close all remaining open positions on the 21st of April.
License cancellation will not foil Binance membership in Australian Financial Complaints Authority
The agency added that the cancellation will not foil Binance’s membership in Australian Financial Complaints Authority. The membership, as revealed, remains valid till April 8, 2024. In recent times, the Australian agency embarked on the review of Binance crypto offerings within the country. This review entails the classification of the exchange’s retail and wholesale clients.
Before cancelling Binance derivatives license, it issued a notice of hearing under s915c of the corporation act of 2001 for Oztures. Then, it deliberated on suspending the AFS licenses granted to Oztures.
The Australian Securities and Investment Commission Chair, Joe Longo commented on the development. He emphasized on the significance of distinguishing between retail and wholesale clients in adherence to the law. Citing the Australia financial services law, Longo maintained that retail clients must get important rights and consumer protections. The exec said one of such rights revolves around external dispute resolution through the Australian Financial Complaints Authority.
Longo further that the agency started its targeted reviews on the matter is currently ongoing. Such review focuses solely on the extent of consumer harms.
ASIC seeks to educate users about the risks of cryptocurrencies
In recent times, the Australian Securities and Investment Commission has shown utmost commitment to educating users on the inherent risks of cryptocurrencies. The agency believes crypto derivatives offered by Binance and other crypto firms pose additional risks to consumers through the operation of leverage. Through its education, it is simply telling investors to be ready to face the risks incurred when investing.
As of the time of writing, not all products and services are under the purview of ASIC. According to the chair, the Australian agency advocates for a regulatory framework capable of protecting consumers and safeguarding the sanctity of the market. He believes in the capacity of the government to make a final decision on all regulatory standards necessary for the industry.