Binance, a cryptocurrency exchange operator, will close its Australian derivatives business after relinquishing a financial services license on Thursday.
This comes after the Australian Securities and Investment Commission’s “targeted review” of Binance since February when the company admitted to misclassifying some retail investors as wholesale.
Retail investors are entitled to greater regulatory safeguards.
In response to a request from the company, ASIC cancelled Oztures Trading Pty Ltd, trading as Binance Australia Derivatives Australians financial services licence on Thursday.
All positions will be filled by the end of April.
“It is critical that AFS licensees correctly classify retail and wholesale clients,” ASIC Chair Joe Longo said in a statement.
“Our targeted review of these matters is ongoing, including focus on the extent of consumer harms.”
Binance was granted a financial services licence, which allowed it to issue derivatives and foreign exchange contracts.
Longo stated that ASIC supported a “regulatory framework” for the asset class, despite the fact that many cryptocurrency products and services are not regulated by the regulator.
Binance announced in a statement that it had decided to take a “more focused approach” in Australia following “recent engagement with ASIC.”
Binance facing regulatory suits and investigations from all over the world.
The US Commodity Futures Trading Commission recently sued Binance and its founder Changpeng Zhao last month for operating an “illegal” exchange, according to the regulator.