Binance Australia Derivatives, a unit of Binance that provides derivatives services, has had its business license withdrawn by the Australian Securities Regulator. The decision comes only one day after the corporation voluntarily halted operations in the nation.
Binance’s Binance Australia Derivatives division provided over-the-counter (OTC) derivatives to its consumers in Australia. The country’s finance body revoked the license that permitted it to engage in these operations. The ASIC (Australian Securities and Investments Commission) judgment came after Binance declared the day before that its business was halting operations in Australia.
Binance made its Move Just Before the Incident
Binance said in a statement that it has decided to discontinue Binance Australia Derivatives operations in order to “pursue a more concentrated strategy in Australia.” According to a corporate spokeswoman, the change would have no impact on the US conglomerate’s commitment to expanding Australia’s digital asset and Blockchain industries. Australians, she stressed, may continue to utilize the spot exchange service.
Those who traded in derivatives, on the other hand, will be required to liquidate any positions opened by April 21, 2023. The Binance Australia Derivatives platform will shut all available positions after this date. There are roughly a hundred users that are affected.
Binance is under Great Stress
Binance‘s action coincides with ASIC’s focused screening, which began in February. Binance liquidated 500 user holdings after discovering that they had been mistaken as “wholesale investors” when in fact, they were retail investors.
Binance is currently the target of a barrage of complaints and allegations. The US Commodity Futures Trading Commission (CFTC) launched a complaint against Changpeng Zhao‘s business last month. The exchange is accused of breaking trade regulations and failing to register its derivatives company before making it available to US consumers, according to the institution. Similar allegations have been made by entities such as the SEC, IRS, and DOJ.