Australia revokes Binance exchange license
1 min readThe air is getting thin for Binance. The crypto exchange also suffered a setback in Australia after the US Commodity Futures Trading Commission (CFTC) filed a lawsuit against CEO Changpeng Zhao. The world’s largest trading venue for cryptocurrencies has applied to the Australian regulator ASIC to have its derivatives license revoked. That comes from a corresponding press release out. Derivatives trading will effectively cease on April 21st. Spot trading is not affected.
Concrete reasons for the revocation of the license remain uncommented. However, the letter reveals that ASIC previously conducted a “targeted review” of Binance’s operations in Australia, including retail and wholesale customer classification.
The specific breakdown is important in Australia as retail clients typically enjoy more consumer protection rights than institutional traders. Possible omissions by Binance could ultimately have led to the cancellation of the license. However, Binance will remain a member of the Australian Financial Complaints Authority (AFCA) until April 8, 2024. The dispute resolution body supports customers with problems with financial service providers.
Binance derivatives trading is also causing trouble around the world
The problems surrounding derivatives trading have been plaguing Binance for some time. Back in 2021, several regulators restricted the crypto exchange’s services, including the UK’s FCA, Japan’s FSA, and Ontario’s Securities and Exchange Commission (OSC). Almost a month after the wave of bans, Binance also had to close down its futures and derivatives service in Germany, Italy and the Netherlands.
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