Binance Australia has been canceled by the Australian Securities and Investments Commission (ASIC) for failing to meet regulatory requirements.
Key Highlights :
In February, Binance Australia Derivatives abruptly closed certain derivatives positions and accounts, citing investor classification compliance. The company stated that it had closed the accounts as part of a “routine compliance action”. The move came as a surprise to many, as Binance Australia was not known for its strict regulations around cryptocurrency investments.
The closure of the accounts has raised some eyebrows, as it came as a surprise just two months after the company had launched its derivatives product. At the time, the company said that the product would offer “high-quality and innovative products”.
However, the product has not been well-received by the community. Many have criticised the company for its lack of transparency and for the abrupt closure of the accounts. Others have pointed out that the product is not yet available to the public, so it is not clear how well it is performing.
The move has also raised some questions about the company’s regulatory compliance. At the time of the closure, Binance Australia was not registered as a financial services provider in Australia. This means that it is not subject to the same regulations as traditional financial institutions.
This is not the first time that Binance has come under scrutiny for its regulatory compliance. The company was forced to move its operations to Malta after it was forced to leave China. At the time, the company stated that it was moving due to the stricter regulations in China.
Despite the concerns around its regulatory compliance, Binance remains one of the leading exchanges in the world. The company has continued to grow, and it now has operations in 20 countries.
