The recent controversy surrounding Binance Australia is concerning the ASIC-issued license for derivative trading. The Crypto exchange requested for such license to be cancelled, due to its low number of users on the platform. The cancellation of the license was subsequently enforced by the Australian Securities and Investments Commission on the 6th April 2021.

CEO of Binance, Changpeng Zhao, reassured customers that even though the exchange sought termination of the license, they ‘will CONTINUE to operate the spot exchange in Australia’, as per their most recent blog post. The Australian Financial Services (AFS) license is a legal requirement to involve in such financial services businesses and the exchange is now bound to cease certain financial product offerings to their Australian customers.

Previously, Australian regulator warned various crypto exchanges to stay compliant with their laws and regulations and the recent license cancellation is a culmination of a ‘targeted review’ which investigated the exchange regarding if it was offering derivatives trading options to retail investors.

CEO Zhao is hoping to bring clarity to the situation and clear the ‘misinformation (and confusion)’, which former statements may have caused. Despite the cancellation, the exchange can still offer a number of services, especially for the local market. Businesses need to constantly adjust their approach depending on the situation and these latest actions by Binance Australia show their commitment to offer quality services in an environment compliant with the local rules and regulations.



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