Binance runs into trouble down under

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By A D

Binance, one of the world’s largest cryptocurrency exchanges, has had its derivatives license cancelled by the Australian Securities and Investments Commission (ASIC) amid an ongoing investigation into the company’s compliance with local regulations. The move by ASIC is just the latest in a string of regulatory actions taken against Binance by various governments around the world.

The cancellation of Binance’s license in Australia means that the company is no longer authorized to offer or provide financial services in the country. Specifically, Binance’s derivatives business in Australia has been affected by the ASIC’s decision. Binance will now have to halt its derivatives trading services in Australia and will no longer be allowed to sign up new customers for these products. Binance CEO Cheng Zhao took to twitter to clear up the confusion over the specifications of the operational restrictions; that derivatives trading, and not spot exchange, will be ceased in Australia.

Binance CEO clears up that only derivatives license has been cancelled, and not all operations.

The decision by ASIC comes after months of investigations into Binance’s operations in Australia. In November 2022, ASIC announced that it was conducting a review of Binance’s compliance with Australian laws, including anti-money laundering and counter-terrorism financing regulations. Following this announcement, Binance halted its Australian dollar trading pairs and began to wind down its Australian operations.

However, the latest decision by ASIC is a more severe blow to Binance’s operations in Australia. The cancellation of its derivatives license means that Binance will no longer be able to offer certain types of cryptocurrency trading services to Australian customers, potentially impacting the exchange’s revenue and reputation in the region.

Binance has stated that it will comply with the ASIC’s decision and work to address the regulator’s concerns. In a statement, the company said that it “takes compliance very seriously and will work closely with regulators to ensure that we continue to operate in a compliant manner.” Binance has also emphasized that its other services, such as spot trading, are not affected by the ASIC’s decision and will continue to be available to Australian customers.

The cancellation of Binance’s derivatives license in Australia is just the latest in a series of regulatory actions taken against the exchange by governments around the world. In recent months, Binance has faced scrutiny and regulatory action in a number of countries, including the United States, the United Kingdom, and Japan. In the United States, Binance has been sued by the Commodity Futures Trading Commission (CFTC) for allegedly operating an unregistered derivatives exchange. In the United Kingdom, the Financial Conduct Authority (FCA) has banned Binance from offering regulated services in the country. And in Japan, the Financial Services Agency (FSA) has issued a warning to Binance for operating without a license.

Also Read: The Big Binance Lawsuit

The regulatory actions against Binance reflect a broader trend in the cryptocurrency industry, as governments around the world seek to increase oversight and regulation of the sector. While cryptocurrencies and blockchain technology offer many potential benefits, including increased financial inclusion and more efficient transactions, they also present significant risks, such as money laundering, fraud, and market manipulation. As a result, regulators are increasingly focusing on ensuring that cryptocurrency exchanges and other companies operating in the sector are complying with local laws and regulations. As the industry continues to evolve, it will be important for companies operating in the sector to work closely with regulators to ensure that they are complying with local laws and regulations.

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