The Australian Securities and Investments Commission (ASIC) revealed that it had canceled Binance's Australian financial services license following a request from the company.
"ASIC has been conducting a targeted review of Binance's financial services business in Australia, including its classification of retail and wholesale customers," the consumer watchdog said.
The review was sparked by Binance's announcement in February that hundreds of retail clients had been classified as wholesale investors, who may be sold high-risk products that are not available to retail clients.
ASIC President Joe Longo said that the review of Binance's operations in Australia is ongoing with a particular focus on the "extent of consumer damages."
"It is extremely important that AFS licensees classify retail and wholesale customers in accordance with the law," he said.
"Retail clients trading crypto derivatives have significant consumer rights and protections under Australia's financial services laws, including access to external dispute resolution through the Australian Financial Complaints Authority."
The cancellation of the license is effective immediately.
As of April 14, cryptocurrency traders will not be able to increase derivative positions or open new positions with the company.
Binance must also close any existing derivatives positions by April 21.
After this date, all remaining open positions will be closed.
Binance acquired an Australian financial services license after becoming the majority shareholder of Oztures Trading.
The crypto exchange giant has been operating in Australia for many years despite only acquiring the license last year.
9news.com.au has contacted Binance for comment on the license termination.๏ปฟ
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