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Australia Cancels Binance

Updated: Jun 8, 2023

- Overview

- What is ASIC

- What is AFSL

- Binance Derivatives Australia: Summary

- Full Saga





Overview

Binance Derivatives Australia's AFSL was revoked upon Binance's request. Binance Australia was forced to shut down its crypto derivatives trading platform. The Australian Securities and Investments Commission (ASIC) cancelled Binance's AFSL after it violated

one of the main provisions.



What is ASIC

ASIC is an independent Australian Government body. It is set up under and administered by the Australian Securities and Investments Commission Act 2001 (ASIC Act), and it carries out most of its work under the Corporations Act.


ASIC stands for the Australian Securities and Investments Commission. It is an independent government regulatory body, set up under and administered by the Australian Securities and Investments Commission Act 2001 (ASIC Act), and it carries out most of its work under the Corporations Act. In Australia responsible for overseeing and enforcing laws that govern the financial markets, investments, and financial services industry in the country. ASIC's main role is to promote fair and transparent financial markets, protect consumers, and enforce regulations related to corporate governance, securities, and financial services. They regulate and supervise various entities, including companies, financial advisers, credit providers, and professional service providers operating in the Australian financial sector. ASIC's mandate is to maintain the integrity and stability of Australia's financial system and ensure investor confidence in the markets.



What is AFSL?

An AFS license refers to an Australian Financial Services License. It is a license issued by the Australian Securities and Investments Commission (ASIC) to entities that intend to provide financial services in Australia. This license is required for businesses and individuals who offer financial products or services to clients in Australia. It ensures that the licensee meets certain regulatory standards and obligations, including compliance with specific laws and regulations related to financial services. Holding an AFS license demonstrates that the licensee has met the necessary requirements and is authorized to operate within the Australian financial services industry.

ASIC assesses applications for AFS licences as part of their role as a regulator of the financial services industry.







Binance Futures Inception & Closure (Australia Only)


Summary


FULL SAGA


Binance Derivatives Official Launch date announcement

13 September 2019 Binance Futures went live



Binance gets Australia Financial Service License by Acquiring Oztures Trading Pty Ltd










Costly Error: Binance Derivatives Australia Mistakenly Classifies Investors

23 February 2023







The ASIC chair, Joe Longo, said the distinction was crucial because retail customers have access to more consumer protections under Australian law, including the right to dispute resolution.

Binance’s Australia’s financial services (AFS) licence only allows it to provide derivatives products to sophisticated investors, rather than retail customers.

“It is critically important that AFS licensees classify retail and wholesale clients in accordance with the law,” Longo said.


“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.”


29 March 2023


ASIC Official License Cancellation disclosure

23-091MR Binance Australia Derivatives – AFS licence cancelled _ ASIC
.pdf
Download PDF • 87KB







Reference:


Meacham, S. (2023) Cryptocurrency exchange binance loses Australian Financial Services Licence, Binance news: Cryptocurrency exchange loses Australian financial services licence. Available at: https://www.9news.com.au/finance/binance-australia-australian-financial-services-licence-cancelled/2947fae7-51e3-46a9-a319-7f4b1c71d5a3 (Accessed: 22 May 2023).


Rogoswami (2023) Australian Regulator Cancels Binance’s license at Exchange’s own request, CNBC. Available at: https://www.cnbc.com/2023/04/06/australian-regulator-cancels-binances-license-at-exchanges-request.html (Accessed: 22 May 2023).


Crypto Exchange Binance has Australian Financial Services Licence cancelled by ASIC (2023) The Guardian. Available at: https://www.theguardian.com/business/2023/apr/06/crypto-exchange-binances-australian-financial-services-licence-cancelled-by-asic (Accessed: 22 May 2023).


Person and Jackson, L. (2023) Australia cancels Binance’s financial services licence amid probe, Reuters. Available at: https://www.reuters.com/technology/australia-cancels-binances-financial-services-licence-amid-probe-2023-04-06/#:~:text=The%20Australian%20Securities%20and%20Investment,some%20retail%20investors%20as%20wholesale.&text=Retail%20investors%20are%20entitled%20to%20a%20higher%20level%20of%20regulatory%20protection. (Accessed: 22 May 2023).


Ashmore, D. (2023) Is Binance in trouble?, Forbes. Available at: https://www.forbes.com/advisor/au/investing/cryptocurrency/binance-crypto-crisis/ (Accessed: 22 May 2023).


23-091MR binance australia derivatives – AFS licence cancelled (no date) 23-091MR Binance Australia Derivatives – AFS licence cancelled. Available at: https://asic.gov.au/about-asic/news-centre/find-a-media-release/2023-releases/23-091mr-binance-australia-derivatives-afs-licence-cancelled/ (Accessed: 22 May 2023).


c=au;o=Australian Government;ou=Australian Government Australian Securities and Investments Commission (no date a) What is an AFS licence? Available at: https://asic.gov.au/for-finance-professionals/afs-licensees/do-you-need-an-afs-licence/what-is-an-afs-licence/ (Accessed: 22 May 2023).


c=au;o=Australian Government;ou=Australian Government Australian Securities and Investments Commission (no date) Our role. Available at: https://asic.gov.au/about-asic/what-we-do/our-role/ (Accessed: 22 May 2023).


Binance Futures Official Launch (no date) Binance. Available at: https://www.binance.com/en/support/announcement/binance-futures-official-launch-360033314152 (Accessed: 22 May 2023).




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