ASIC cancels AFS license of Binance Australia Derivatives

On April 6, 2023, ASIC canceled the Australian Financial Services (AFS) license held by Oztures Trading Pty Ltd trading as Binance Australia Derivatives (Binance).

Following the cancellation:

• with effect from 14 April 2023, clients will not be able to increase derivatives positions or open new positions with Binance;

• Binance will require clients to close any existing derivative positions before 21 April 2023;

• on 21 April 2023, Binance will close any remaining open positions.

ASIC has been conducting a targeted review of Binances financial services business in Australia, including its classification of retail and wholesale clients. On 29 March 2023, ASIC issued a notice of hearing under s915C of the Corporations Act 2001 to consider whether ASIC should cancel or suspend the AFS license held by Oztures Trading Pty Ltd.

ASIC Chair Joe Longo said, It is critically important that AFS licensees classify retail and wholesale clients by the law. Retail clients trading in crypto derivatives are afforded important rights and consumer protections under financial services laws in Australia, including access to external dispute resolution through the Australian Financial Complaints Authority.

“Our targeted review of these matters is ongoing, including a focus on the extent of consumer harms,” said Mr. Longo.

On the same day, The Australian Securities and Investments Commission (ASIC) also canceled the Australian financial services (AFS) license of another company called Starfish Financial Services Pty Ltd.