Australia revokes crypto exchange license

The air is getting thinner for Binance. Crypto exchanges in Australia have also suffered setbacks after the US Commodity Futures Trading Commission (CFTC) filed a lawsuit against CEO Changpeng Zhao. The world’s largest trading venue for cryptocurrencies has applied to Australian regulator ASIC to revoke its derivatives license. It has been relevant Press release outside. Derivatives trading will be suspended effective April 21. Spot trading will not be affected.

Definite reasons for cancellation of license were not commented. However, the letter reveals that ASIC has previously conducted a “targeted review” of Binance’s operations in Australia, including retail and wholesale customer classification.

The specific breakdown in Australia is important as retail customers generally enjoy greater consumer protection rights than institutional traders. Potential lapses in finances may eventually lead to license revocation. However, Binance will remain a member of the Australian Financial Complaints Authority (AFCA) until April 8, 2024. A dispute resolution system supports customers who have problems with financial service providers.

Binance derivatives trading is also causing trouble around the world

Issues surrounding derivatives trading have plagued Binance for some time. In 2021, several regulators regulated the services of crypto exchanges, including the UK’s FCA, Japan’s FSA, and Ontario’s Securities and Exchange Commission (OSC). Almost a month after the wave of bans, Binance had to shut down its futures and derivatives service in Germany, Italy and the Netherlands. However, licenses for crypto trading were obtained last year in France, Italy, Spain, Lithuania, Sweden, Poland and Cyprus. In Germany, Binance is still awaiting approval.