Binance has announced the closure of its Binance Australia Derivatives business following pressure from the Australian Securities and Investments Commission (ASIC).
The agency, on the other hand, insisted that the cancellation did not affect Binance's need to continue as a member of the Australian Financial Complaints Authority until the end of April 8, 2024.
Binance said it plans to take a "more focused approach" in the country while continuing to build a locally registered spot exchange, operated by Binance Australia. Additionally, the Binance Australia spot trading platform is unaffected, and users can continue to access it.
Binance's official statement on the matter stated;
“We have contacted affected users to inform them of the shutdown process. ami apologize for any inconvenience this may cause and we will be closely monitoring the process to ensure it runs smoothly.”
This is not the first time that Binance derivatives trading in Australia has been affected. Amid regulatory concerns, the crypto exchange halted services for futures, options and leveraged tokens for its users in the country in September 2021.
The news follows ASIC revoking the Australian financial services license held by Oztures Trading Pty Ltd trading as Binance Australia Derivatives. The securities agency confirmed in a press release that the license was revoked on April 6 in response to Binance.
Customers will not be able to open derivatives trades with Binance following cancellation. Crypto exchanges will also require users to close any existing derivative positions before April 21.
