The Australian Securities and Investments Commission (ASIC) has cancelled Binance Australia's derivatives license, according to a press release on Thursday.

Binance Australia, an arm of the world's largest crypto exchange by trade volume, has been ordered by the regulator to close all client's open derivatives positions by April 21.

ASIC has been conducting a targeted review of Binance's businesses, the press release said.

“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," ASIC Chair Joe Longo said.

Longo added that ASIC supports a regulatory framework for crypto in Australia, insisting that the final decision lies with the government.

Binance found itself in hot water with regulators last week, with the U.S. Commodity Futures Trading Commission (CFTC) filing a lawsuit against the exchange over allegedly operating derivatives products in America.

In a statement, Binance Australia said that it was "winding down" its derivatives product to "pursue a more focused approach." Former Binance Australia CEO Leigh Travers, who stepped down from his role on March 10, said in December that the exchange had over one million users in an interview with the Sydney Morning Herald.

UPDATE (April. 6, 08:35 UTC): Adds context throughout and statement from Binance Australia.