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The world's biggest cryptocurrency exchange has lost its Australian financial licence after an investigation by Australia's corporate watchdog, forcing local investors to wind up their assets immediately.
The Australian Securities and Investments Commission (ASIC) revealed it had cancelled Binance's Australian financial services licence following a request from the company.
"ASIC has been conducting a targeted review of Binance financial services business in Australia, including its classification of retail and wholesale clients," the consumer watchdog said.
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The review was sparked by Binance's announcement in February that hundreds of retail customers had been classified as wholesale investors – who can be sold high-risk products unavailable to retail clients.
ASIC Chair Joe Longo said the review into Binance's operations in Australia is ongoing with a particular focus on the "extent of consumer harms".
"It is critically important that AFS licensees classify retail and wholesale clients in accordance with the law," he 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."
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The cancellation of the licence is effective immediately.
From April 14, crypto traders won't be able to increase derivatives positions or open new positions with the company.
Binance is also required to close any existing derivative positions before April 21.
After this date, all remaining open positions will be closed.
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Binance acquired an Australian financial services licence after it became the majority shareholder of Oztures Trading.
The crypto exchange giant has been operating in Australia for many years despite only acquiring the licence last year.
9news.com.au has contacted Binance for comment on the cancellation of the licence.
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