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Aussie regulators review Binance Australia Derivatives over account closures

A day after Binance Australia Derivatives sent notifications of account closures to users it wrongly classified, regulators in Australia said they’re looking into the company.

On Feb. 23, Binance Australia Derivatives sent a sudden message to a select group of users saying it would close his account immediately because some users were improperly classified as "wholesale price customers".

The incident triggered a series of responses on social media, and the next day, the Australian Securities and Investment Commission (ASIC) announced that it would conduct a "purposeful verification" of Binance's local derivatives program.

The verification of Binance Australia derivatives will include the company's "types of retail and wholesale price customers", according to a statement by a regulatory spokesman on Feb. 24.

The spokesman added:

"the company did not report such matters to the ASIC in accordance with its obligations under its Australian financial information services license plate requirements."

However, the spokesman said regulators "understand Binance's social media posts", which are posted shortly after users first posted a screenshot of a notice on Twitter.

Binance clarified the matter on social media, saying it had closed derivatives trading positions and some user accounts, who were improperly classified as "wholesale price customers". At this stage, the website is only open to wholesale investors.

Hours after the initial post, Binance showed that 500 users had been affected by the precautions.

A spokesman for Binance strictly enforced that the trading center was "focused" on complying with local Australian laws and regulations.

Zhao Changpeng, co-founder and CEO of Binance, said on Twitter that all users will also be compensated for all losses and ignore FUD. He mentioned that the company is dealing with the situation to see if it will resume open futures trading in Australia in the future.

The Binance cryptocurrency Exchange, the world's largest cryptocurrency exchange, has been very public about its diligence in complying with local business regulatory policies.

by wjb news
© 2023 WJB All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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