Binance Has Australian Financial Services License Canceled By ASIC

Australia's financial regulator has cancelled the local financial services licence of the world's biggest cryptocurrency exchange, Binance. The Guardian reports: Earlier this year, the Australian Securities and Investments Commission (Asic) found Binance had incorrectly classified hundreds of retail customers as wholesale investors. The Asic chair, Joe Longo, said the distinction was important because retail customers have access to more consumer protections under Australian law, including the right to dispute resolution. Binance's Australia's financial services (AFS) licence only allows it to provide derivatives products to sophisticated investors, rather than retail customers.

"It is critically important that AFS licensees classify retail and wholesale clients in accordance with the law," Longo said. "Retail clients trading in crypto derivatives are afforded important rights and consumer protections under financial services laws in Australia, including access to external dispute resolution through the Australian financial complaints authority. Our targeted review of these matters is ongoing, including focus on the extent of consumer harms."

From April 14, Binance clients will not be able to increase derivatives positions or open new positions. The exchange must close any remaining open positions by April 21. Binance can remain a member of the Australian financial complaints authority until April 8, 2024. "As we have said before, Asic supports a regulatory framework for crypto with a focus on consumer protection and market integrity. The final decision as to the regulatory settings is one for government," Longo said. Binance has been operating in Australia for many years but its now cancelled AFSL was with Oztures Trading, a company it acquired last year.

The noose is closing in

[SuperKendall]

This is a huge danger with Crypto at the moment, lots of governments primed to shut down on and off-ramps after FTX... Tread carefully here, if at all.

Myself, I decided to stay out of crypto, no matter how tempting, until the fallout from FTX failing is complete... maybe six months or so to know the full impact. I salute those who choose to stay in and ride stout, and wish you luck...

I don't think there's any saving it

[rsilvergun]

There's no way to regulate crypto without making it go away. The only value in crypto is Ponzi schemes and money laundering both of which are illegal for good reason.

For my money I wanted to go away. At first I wanted to go away so I could buy a graphics card. But crypto is permanently fucked up the graphics card market by setting higher price points. At this point I just want to keep it from being integrated into my finance system.

Try to imagine what would happen if you took a bunch of cryptocurrencies and combine them together and sold that as a security. Now try to imagine if the banks passed those worthless securities around as though they had value and became massively overvalued because of them.

That's exactly what happened in 2008 only the underlining assets were houses so there was a bottom to be hit eventually. If the underlining asset is MeMe coins and Ponzi schemes there's no end to that crash. It would make the Great depression look like the .com boom.

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[ddtmm]

I think that’s the best perspective of crypto currency I’ve seen in along time. Couldn’t agree with you more.

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[gweihir]

Indeed. Fortunately, crapcoin peddlers have zero change to comply with any reasonable regulation as a financial service provider, let alone as a bank. This stuff is just wayyy too crappy and pervaded by scams and other criminal activity. Hell, just only applying the money-laundering provisions should kill them all. I think enough of the people responsible for keeping the financial system functional have now understood that.

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[blahabl]

Money laundering laws serve one purpose only: to stop financial activity your government does not approve of. Right now "activity govt does not approve of" is mostly "crime", because those totalitarian assholes are still too weak to show their true colors, and have to play the "but but kiddie porn! think of the children!" card, but if you think it'll stay that way once they manage to finally pull the plug on cash (and prevent BTC or the like from taking over) you're either a moron or a willing accomplice.

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[JKanoock]

Only one purpose you say. Look at the real estate prices in North America for an example of how wrong you are, not even going to touch on the elephant in the room called ransomware. Just one purpose my arse. It's not just the government that does not approve of these things, everyone but the complicit also have issues so which one are you?

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[blahabl]

Given a choice between world with ransomware with it, and a totalitarian dystopia where govt can decide to cancel all your finance with a single click... yeah, I'll take the ransomware, thank you very much.

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[JKanoock]

It's coming, they never learn from the past when their is money to be made and people to scam.

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[aldousd666]

I mostly agree. I don't care about its effect on other markets, like graphics cards, because that's just supply and demand at work setting prices; however, you're right to say that these are just like MBS and CDOs, at least, potentially. If they're securitized and derivative-ized they, or their ensuing insurance contracts, could easily destabilize a whole chunk of the market. On the other hand, if one particular brand of crypto became a real standard, and was actually monitored and watched... like everyone

So this is the power of ASIC

[Kyogreex]

Really puts FPGAs to shame.