After Multiple Account Closures, Australia’s Financial Watchdog Is Looking Into Binance Australia Derivatives

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On the heels of Binance Australia Derivatives’ notifications to users whose accounts had been erroneously terminated, Australian regulators declared they are investigating this company’s practices.

Binance Australia Derivatives notified chosen customers that their accounts would be closed without warning due to the misidentification of specific users as “wholesale clients.”

This event sparked a frenzy of reactions from individuals on social media. The following day, the Australian Securities and Investments Commission (ASIC) declared it would perform an “aimed examination” of Binance’s local derivatives operations.

The regulator has declared that their review of Binance Australia Derivatives will include evaluating the firm’s categorization of retail and wholesale customers. A spokesperson for the regulator made this statement public.

It has not yet reported these matters to ASIC in accordance with its obligations under its Australian financial services licence,” the spokesperson said.

In response to users sharing screenshots of the notices on Twitter, the spokesperson for the regulator declared that they were aware of Binance’s social media posts made shortly after.

Binance recently took to social media to explain the incident, mentioning that they closed derivatives positions and accounts of specific users who were misclassified as “wholesale clients.” Right now, the platform is only accessible to wholesale investors.

Hours after their initial posts, Binance reported that the remediation impacted 500 users. A spokesperson from Binance reaffirmed the exchange’s dedication to following all applicable laws in Australia.

Changpeng “CZ” Zhao, Binance’s co-founder and CEO, recently announced that all users would be reimbursed for any financial losses. He also declared that the company is investigating whether it can offer futures trading in Australia at a future date. The message was clear: do not listen to gossip – we got this.

With its worldwide prominence, Binance has been very vocal regarding following the required regulations of its various operating locations. As the world’s largest cryptocurrency exchange, they are committed to abiding by all local laws and standards.

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