Claiming that it was only the derivatives license of Binance Australia that was canceled, the exchange’s CEO on Thursday offered an explanation to clear any confusion. Earlier, CoinGape reported that the Australia Securities & Investment Commission (ASIC) said it was canceling the Australian financial services (AFS) license held by Binance. However, CZ clarified that the Binance Australia Derivatives business is being closed but the spot exchange will continue to operate in the country.

Recently, the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against the crypto exchange over regulatory violations in trading and derivatives related operations. The lawsuit came as a major shock to the crypto market recent times, especially because it is the world’s largest cryptocurrency exchange in terms of trading volumes.

The Binance CEO revealed that there were only 104 users in the company’s derivatives business, in what could be a clear indication for possible reason behind the move. CZ said it was only after the company requested to do so that the Australian regulators canceled the derivatives license.

(By Anvesh Reddy)