Crypto’sC Binance loses its licence

Binance, one of the world’s largest crypto trading platforms, requested the Australian Securities & Investments Commission cancel its licence on Wednesday, days after facing charges in the US from financial regulators.

The corporate regulator agreed on the condition the crypto giant remained a member of the financial complaints authority.

The cancellation means Binance’s Australian clients will be barred from increasing or opening new derivatives positions as of April 14, and all clients will be required to close out positions by April 21.

Any clients who fail to close their open positions by April 21 face the firm closing out derivatives positions.

The move to imminently shut down Binance Australia’s derivatives operations marks the closure of the firm’s only division licensed to provide derivative products under the AFSL held by its corporate entity, Oztures.

Binance secured the Australian Financial Services licence after buying Oztures. It offered derivatives through the business in July 2022, and the exchange’s chief executive, Changpeng Zhao, claimed Australia’s “crypto market is a unique opportunity due to the robustness of the financial services regime”.

ASIC has been pursuing Binance’s Australian business in recent months, hitting the firm with a notice of hearing on March 29 demanding it consider whether it should face suspension or cancellation of its finance licence.

Binance said it was culling its AFSL after “recent engagement with ASIC”.

“Local users can continue to access and enjoy Binance Australia’s spot trading platform,” Binance said. “This does not affect Binance’s continued commitment to the development of the local blockchain and digital assets industry.”