The Australian Securities and Investments Commission (ASIC) today revoked the Australian Financial Services (AFS) licence of Binance Australia Derivatives (the Trading name of Oztures Trading Pty Ltd).

The action was taken after Binance and its chief executive, Changpeng Zhao, were sued in the United States by the commodity markets regulator, alleging that the defendants "intentionally circumvented U.S. law."

The Australian watchdog said it has been conducting a targeted review of Binance's financial services business in the country, including its classification of retail and institutional customers.

According to official sources, after the cancellation of the license, Binance customers will not be able to increase their derivative positions or open new positions from April 14, 2023. The crypto firm is required to require clients to close any existing derivative positions by April 21, 2023. In addition, on the same day, Binance is required to close all remaining open positions.

ASIC Chairman Joe Longo said: "It is essential that AFS licensees classify retail and institutional customers in accordance with the law. Under Australia's Financial Services law, retail clients trading cryptocurrency derivatives enjoy significant rights and consumer protections, including the resolution of external disputes through the Australian Financial Complaints Authority. We are conducting a targeted review of these matters, including focusing on the extent of consumer harm."