Binance CEO Changpeng Zhao has utilized the power of Twitter to dispel any “misinformation (and confusion)” surrounding Binance Australia. Zhao clarified that Binance Australia had voluntarily requested the cancellation of its derivatives license, which was subsequently granted by the Australian Securities and Investments Commission (ASIC) at the crypto exchange’s behest. This move demonstrates Binance’s commitment to transparency and regulatory compliance and its willingness to adapt to changing market conditions.
As per Zhao’s tweet, the platform’s user base stood at a modest 104 on April 6, the day of the cancellation. However, Binance Australia remains resolute in its commitment to operating its spot exchange in the country. In a recent blog post, the exchange reaffirmed its unwavering dedication to providing top-notch services to its Australian clientele.
Following recent engagement with ASIC, Binance has chosen to pursue a more focused approach in Australia by winding down the Binance Australia Derivatives business.
Zhao’s tweet features a visual representation of the ASIC report, which confirms the cancellation of Binance in light of a recent request. The report also details the subsequent actions to respond to this decision. All information is presented in a polished and business-like manner.
To operate a financial services business in Australia, holding an AFS license as per the ASIC regulations is mandatory. Consequently, revoking the derivatives license would result in the company needing help to provide specific financial products to its Australian clientele.
Binance Australia’s derivative license has been revoked following a thorough “targeted review” by regulators, which probed whether the exchange was flouting its license by providing retail investors with trading options. The Australian Securities and Investments Commission (ASIC) had previously cautioned that it would take action against exchanges that failed to adhere to Australian laws and regulations. This latest development is part of a growing trend of regulatory oversight surrounding the prominent crypto exchange and its founder.
