Binance Australia has lost its financial services license after being investigated by the Australian Securities and Investments Commission (ASIC).
The company misclassified retail and wholesale clients, allowing retail clients to purchase risky products that were only supposed to be available to wholesale clients.
The decision to suspend or cancel Binance’s Australian Financial Services (AFS) license was made after discussions on March 29. Australian clients must unwind their derivative investments immediately, and Binance has until April 21 to ensure all derivative positions are closed.
This comes after the US CFTC launched a probe into the exchange and CEO Changpeng Zhao, while authorities in the UK, Japan, Italy, Singapore, Netherlands, Canada and Thailand are also investigating Binance.
Despite losing its financial services license, Binance Australia customers will still be able to use its spot exchange product.
