On Thursday, The
Australian markets regulator, ASIC
ASIC
The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the
The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the
Read this Term, informed that it canceled a financial
markets license held by Binance Australia Derivatives, operated by Oztures
Trading Pty Ltd. Although at first glance, it may seem that the regulatory
hurdles of the renowned crypto exchange seem to have no end. This time, the
decision to withdraw the license was made by Binance itself.
However, it
came after the regulator held a hearing last week, considering
whether it should suspend or cancel the license held by Oztures Trading.
ASIC Cancels Binance License
in Australia
According
to ASIC's statement, starting from 14 April 2023, it will not be possible for
clients to increase their derivatives positions or open new positions with
Binance. Additionally, the crypto exchange will require all clients to close
any existing derivative positions they may have before 21 April 2023. If they
fail to do so, the exchange that day will close all remaining trades
automatically.
The supervisor
has been executing a focused evaluation of Binance's financial services
operations within Australia, with particular attention to the categorization of
retail and wholesale consumers. On 29 March 2023, ASIC served a hearing notice
to assess whether the AFS license held by Oztures Trading Pty Ltd should be
revoked or put on hold.
We have cancelled the Australian financial services licence held by Oztures Trading Pty Ltd, trading as Binance Australia Derivatives https://t.co/lwqfRanBc2 #crypto #binance pic.twitter.com/DcmX4xdhpD
— ASIC Media (@asicmedia) April 6, 2023
"It is critically important that AFS licensees
classify retail and wholesale clients in accordance with the law. 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," Joe Longo, the Chairman at ASIC, commented.
The
stipulations surrounding the termination encompass a clause stating that the
annulment will not impact Binance's obligation to remain a part of the
Australian Financial Complaints Authority until 8 April 2024.
Taking the
opportunity, ASIC reminds us that cryptocurrencies are a risky and complicated
financial instrument, and cryptocurrency derivatives carry additional risks due
to leverage.
Binance's Regulatory
Hurdles
ASIC, in
its announcement regarding the cancellation of Binance's license, reminds us that on 27 March 2023 the US Commodities Futures Trading Commission (CFTC
CFTC
The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss
The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss
Read this Term) declared
that it has initiated a civil enforcement lawsuit in the US District Court for
the Northern District of Illinois. It accused Changpeng Zhao, the CEO of the
Binance Group, and three organizations responsible for Binance's operations of
multiple breaches of the Commodity Exchange Act (CEA) and CFTC regulations.
A mere few hours following CFTC’s legal action, Binance's CZ openly dismissed the
accusations as "unexpected and disappointing," characterized by
"an incomplete recitation of facts." In a concise retort via an
official blog entry, Zhao denied all the primary claims, ensuring that
comprehensive responses will be provided in due course.
My Response to the CFTC Complaint | Binance Blog https://t.co/TadyotM7HN
— CZ 🔶 Binance (@cz_binance) March 27, 2023
Earlier,
many other overseas regulators published their own warnings regarding Binance
operations. There are at least seven regulators on the list, including the UK's
FCA, Japan's FSA, Italy's CONSOB, Singapore's MAS, Netherlands Central Bank,
Ontario Securities Commission and Thailand's SEC.
Despite the
regulatory problems that have dogged Binance since at least 2021, the exchange achieved
its largest market share among other cryptocurrency exchanges in March. Binance's
popularity grew despite declining volumes at other major exchange offerings and
the US legal issues with the BUSD stablecoin.
FCA
Stops WealthTek and RoboForex Increases Partner Commissions. Read
today’s news nuggets!
On Thursday, The
Australian markets regulator, ASIC
ASIC
The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the
The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the
Read this Term, informed that it canceled a financial
markets license held by Binance Australia Derivatives, operated by Oztures
Trading Pty Ltd. Although at first glance, it may seem that the regulatory
hurdles of the renowned crypto exchange seem to have no end. This time, the
decision to withdraw the license was made by Binance itself.
However, it
came after the regulator held a hearing last week, considering
whether it should suspend or cancel the license held by Oztures Trading.
ASIC Cancels Binance License
in Australia
According
to ASIC's statement, starting from 14 April 2023, it will not be possible for
clients to increase their derivatives positions or open new positions with
Binance. Additionally, the crypto exchange will require all clients to close
any existing derivative positions they may have before 21 April 2023. If they
fail to do so, the exchange that day will close all remaining trades
automatically.
The supervisor
has been executing a focused evaluation of Binance's financial services
operations within Australia, with particular attention to the categorization of
retail and wholesale consumers. On 29 March 2023, ASIC served a hearing notice
to assess whether the AFS license held by Oztures Trading Pty Ltd should be
revoked or put on hold.
We have cancelled the Australian financial services licence held by Oztures Trading Pty Ltd, trading as Binance Australia Derivatives https://t.co/lwqfRanBc2 #crypto #binance pic.twitter.com/DcmX4xdhpD
— ASIC Media (@asicmedia) April 6, 2023
"It is critically important that AFS licensees
classify retail and wholesale clients in accordance with the law. 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," Joe Longo, the Chairman at ASIC, commented.
The
stipulations surrounding the termination encompass a clause stating that the
annulment will not impact Binance's obligation to remain a part of the
Australian Financial Complaints Authority until 8 April 2024.
Taking the
opportunity, ASIC reminds us that cryptocurrencies are a risky and complicated
financial instrument, and cryptocurrency derivatives carry additional risks due
to leverage.
Binance's Regulatory
Hurdles
ASIC, in
its announcement regarding the cancellation of Binance's license, reminds us that on 27 March 2023 the US Commodities Futures Trading Commission (CFTC
CFTC
The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss
The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss
Read this Term) declared
that it has initiated a civil enforcement lawsuit in the US District Court for
the Northern District of Illinois. It accused Changpeng Zhao, the CEO of the
Binance Group, and three organizations responsible for Binance's operations of
multiple breaches of the Commodity Exchange Act (CEA) and CFTC regulations.
A mere few hours following CFTC’s legal action, Binance's CZ openly dismissed the
accusations as "unexpected and disappointing," characterized by
"an incomplete recitation of facts." In a concise retort via an
official blog entry, Zhao denied all the primary claims, ensuring that
comprehensive responses will be provided in due course.
My Response to the CFTC Complaint | Binance Blog https://t.co/TadyotM7HN
— CZ 🔶 Binance (@cz_binance) March 27, 2023
Earlier,
many other overseas regulators published their own warnings regarding Binance
operations. There are at least seven regulators on the list, including the UK's
FCA, Japan's FSA, Italy's CONSOB, Singapore's MAS, Netherlands Central Bank,
Ontario Securities Commission and Thailand's SEC.
Despite the
regulatory problems that have dogged Binance since at least 2021, the exchange achieved
its largest market share among other cryptocurrency exchanges in March. Binance's
popularity grew despite declining volumes at other major exchange offerings and
the US legal issues with the BUSD stablecoin.
FCA
Stops WealthTek and RoboForex Increases Partner Commissions. Read
today’s news nuggets!