Binance Australia and Local Regulatory Compliance
Binance Australia is taking steps to meet local compliance requirements, according to reports that the company’s offices were searched on July 4. A spokesperson for Binance Australia told Cointelegraph that the company is “focused on meeting local regulatory standards in order to serve our users in Australia in a fully compliant manner.”
Bloomberg reported that the Australian Securities and Investments Commission (ASIC) conducted searches at Binance Australia locations as part of an ongoing probe of the company’s now-defunct derivatives business. The source of the information was anonymous people familiar with the matter.
When asked to confirm or deny whether Binance’s offices were searched or if the company was aware of a local probe, the representative declined to comment.
Binance Australia Derivatives License Cancellation
In April 2023, the Australian Securities and Investment Commission (ASIC) canceled the license of Binance Australia Derivatives following a targeted review of the platform’s classification of retail and wholesale investors. In response, Binance decided to take a “more focused approach” and shut down derivatives trading in the country, while still offering spot trading services.
The move came after the regulators initiated an investigation into Binance in February, when the company suddenly closed some derivatives positions. It was reported that Binance was restricting users who did not meet the criteria to be classified as wholesale investors.
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