Crypto Giant Binance Faces Crushing Blow in Australia

1. ASIC cancels Binance Australia’s license
2. Open derivatives positions closure by April 21
3. Binance under regulatory scrutiny globally

Australia’s Securities and Investments Commission (ASIC) has dealt a significant blow to Binance Australia, the local arm of the world’s leading cryptocurrency exchange, by revoking its derivatives license. Binance Australia now faces an April 21 deadline to close all open derivatives positions for its clients, adding to the company’s global regulatory woes.

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Source: asic.gov.au

The decision follows an extensive review conducted by ASIC, targeting the exchange’s business practices. In a statement, ASIC Chair Joe Longo emphasized the importance of complying with Australian financial service laws and properly classifying clients as retail or wholesale. According to Longo, retail clients trading in crypto derivatives have the right to certain protections, such as access to external dispute resolution through AFCA.

While ASIC remains open to a regulatory framework for cryptocurrency in Australia, Longo insisted that such decisions ultimately rest with the government. This latest development in Australia comes on the heels of Binance facing increased scrutiny from regulators worldwide. Just last week, the U.S. Commodity Futures Trading Commission (CFTC) sued Binance, alleging the exchange offered derivatives without authorization.

As Binance grapples with regulatory challenges both in Australia and internationally, the exchange’s future hangs in the balance. The company must adapt to an increasingly complex regulatory environment or risk further setbacks in its quest to maintain its position as a global crypto leader.

In other news, OpenAI, the firm behind the popular AI chatbot ChatGPT, is currently under investigation by Canada’s privacy commissioner for allegedly collecting and using personal information without users’ consent.

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