#Binance Australia Loses Derivative Financial Services License

04/06/2023 07:49 • Blockchain Briefs • 123 views

According to reports, the Australian Securities and Investment Commission (ASIC) has revoked the derivative financial services license of Binance Australia. The Australian Securities and Investment Commission (ASIC) stated that after the revocation of the license, Binance Australian clients will be unable to increase their derivative positions or open new positions using Binance from April 14th onwards. In addition, Binance Australia will require customers to close all existing derivative positions by April 21, 2023.

Australian Securities and Investment Commission Revokes the Derivative Financial Services License of Coin Security Australia Branch

On April 2nd, 2022, the Australian Securities and Investment Commission (ASIC) revoked the derivative financial services license of Binance Australia. As a result of the revocation, Binance Australian clients will no longer be able to increase their derivative positions or open new positions using Binance from April 14th onwards.
Furthermore, Binance Australia will require all customers to close their existing derivative positions by April 21, 2023. This move comes after ASIC conducted a review of Binance Australia’s compliance with financial regulations.
##Reasons Behind the Revocation
The revocation of Binance Australia’s derivative financial services license comes after ASIC’s review of the company’s operations. The review focused on the company’s compliance with financial regulations and its adherence to anti-money laundering regulations.
ASIC stated that it found deficiencies in Binance Australia’s compliance frameworks and that the company failed to demonstrate its ability to meet regulatory requirements.
##Impact on Binance Australia Clients
Binance Australia clients who hold derivative positions with the company will be impacted by the revocation of the license. Effective April 14th, clients will be unable to increase their derivative positions or open new ones using Binance Australia.
Furthermore, all clients will be required to close their existing derivative positions by April 21, 2023. The company has stated that it will provide clients with support during the transition period and that it will ensure that all clients’ funds are safe and secure.
##Binance’s Response
Binance has responded to the revocation of its derivative financial services license in Australia. The company has stated that it is committed to complying with all applicable regulations and that it will continue to work closely with ASIC to address its concerns.
Furthermore, Binance has stated that it will continue to operate in other jurisdictions where it is authorized to do so.
##Conclusion
The revocation of Binance Australia’s derivative financial services license underscores the importance of complying with financial regulations. ASIC’s decision sends a message to other companies operating in Australia that non-compliance will not be tolerated.
For clients, the revocation of the license means that they will no longer be able to use Binance Australia for derivative services. However, the company has stated that it will provide clients with support during the transition period.
##FAQs
1. Why did ASIC revoke Binance Australia’s derivative financial services license?
ASIC revoked Binance Australia’s license after it found deficiencies in the company’s compliance frameworks and its adherence to anti-money laundering regulations.
2. How will Binance Australia clients be impacted by the revocation of the license?
Effective April 14th, clients will no longer be able to increase their derivative positions or open new ones using Binance Australia. All clients will be required to close their existing derivative positions by April 21, 2023.
3. What is Binance’s response to the revocation of its derivative financial services license?
Binance has stated that it is committed to complying with all applicable regulations and that it will continue to work closely with ASIC to address its concerns. The company has also stated that it will continue to operate in other jurisdictions where it is authorized to do so.

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