- ASIC has decided to investigate the derivatives business of Binance Australia.
- Binance Australia decided in April 2023 to shut down its derivatives business.
Australian financial authorities are investigating cryptocurrency exchange Binance, and they recently conducted a search of the company’s premises. This is related to the investigation into derivatives, a business that Binance stopped doing in Australia earlier this year.
Bloomberg claims that on Tuesday, July 4, agents from the Australian Securities and Investments Commission (ASIC) raided Binance Australia offices. ASIC has decided to investigate the derivatives business of Binance Australia as part of its investigation. The distinction between Binance’s retail and wholesale customers will also be examined.
Binance Australia decided in April 2023 to shut down its derivatives business in response to the regulatory action. In April, the Australian Securities and Investments Commission (ASIC) revoked Binance Australia’s derivatives license.
It has, however, kept its crypto spot trading platform up and running. However, as of the end of June, Binance Australia no longer allows deposits or withdrawals in Australian Dollars. The cryptocurrency exchange has already stated that they misclassified certain Australian customers as wholesale investors and therefore closed their derivatives holdings.
Global Regulatory Crackdown
Binance, a cryptocurrency exchange, has been receiving significant regulatory criticism from governments throughout the world. As a result, it has lost the backing of certain payment processors that fear regulatory backlash.
Binance was recently probed by French police looking into possible criminal activity involving digital assets and money laundering. Binance asserts that it abides by all applicable regulations in France and elsewhere it does business.
US Securities and Exchange Commission (SEC) charged Binance and its CEO Changpeng Zhao (CZ) with mishandling client cash, deceiving investors and regulators, and breaking securities laws in June.
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