Binance CEO Addresses “Misinformation” Surrounding Binance Australia

Binance CEO Changpeng Zhao has taken to Twitter to address the “misinformation (and confusion)” surrounding Binance Australia. In a tweet, Zhao clarified that Binance Australia had requested to cancel its derivatives license, which was subsequently canceled by the Australian Securities and Investments Commission (ASIC) at the crypto exchange’s request.

There are some misinformation (and confusion) about #Binance Australia.@Binance_AUS requested to cancel the derivatives license yesterday. The platform had exactly 104 users as of yesterday.@Binance_AUS will CONTINUE to operate the spot exchange in AU. ? pic.twitter.com/nEExtG4U90

— CZ ? Binance (@cz_binance) April 6, 2023

According to Zhao’s tweet, the platform had just 104 users as of April 6, the day the cancellation was effected. Despite this setback, Zhao confirmed that Binance Australia would continue to operate its spot exchange in Australia. Binance posted in their recent blog:

Following recent engagement with ASIC, Binance has chosen to pursue a more focused approach in Australia by winding down the Binance Australia Derivatives business.

Zhao’s tweet is attached with an image of the ASIC report highlighting that the cancellation was “in response to a request to cancel received from Binance yesterday.” The report further outlines the measures that will follow the cancellation.

An AFS license is a legal requirement by the ASIC to conduct Australian financial services businesses. Thus, canceling the derivatives license means the company will no longer be able to offer certain types of financial products to its Australian clients.

The cancellation of Binance Australia’s derivative license comes after the regulator’s “targeted review” that investigated whether the exchange was violating its license by offering these trading options to retail investors. Last year, the ASIC warned that it would take action against exchanges that do not comply with Australian laws and regulations. Moreover, the license cancellation is the latest in the increasing regulatory scrutiny around the largest crypto exchange and its founder.

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