Binance to cease crypto derivatives trading for existing Australian users in 90 days
Crypto exchange Binance will no longer offer futures, options, and leveraged tokens to Australian clients.
Fri, 24 Sep 2021, 08:32 am UTC
Binance has announced that it is shutting down crypto derivatives trading for existing customers in Australia. The company explained that the move is part of its efforts for regulatory compliance.
“As Binance constantly evaluates its product and service offerings to comply with local regulations, we will cease offering the following products to existing Australian users: futures, options, and leveraged tokens,” Binance announced on Tuesday.
The company added that from September 24, existing Australian uses who have invested in these products will have 90 days to reduce and close their positions. While they will still be able to top-u margin balances during this period, they will no longer be allowed to increase or open new positions.
“Users will no longer be able to manually reduce or close their positions after 2021-12-23 11:59 PM (UTC),” the company said. “Thereafter all remaining open positions will be closed.”
The company announced in August that it Australian users will no longer be able to open new accounts for margin products, options, and leveraged tokens, according to Business Insider. The announcement came just week after the platform stopped opening new future accounts.
There have been recent changes in Binance Australia’s organizational structure. The company announced on August 30 that Leigh Travers has joined its Australia operations as the new CEO. Travers is the former CEO of the ASX-listed blockchain firm Digitalx.
The company has been facing pressure from various regulators around the world. In January, the UK’s FCA ordered Binance to stop all regulated activities, while Italy’s securities market regulator issued a statement in July warning the public that the Binance Group is not authorized to operate and provide investment services in Italy.
In its recent blog post, the world’s biggest crypto exchange by trading volume expressed its willingness to collaborate with regulators. “Our aim is to create a sustainable ecosystem around blockchain technology and digital assets,” Binance said. “We are committed to working constructively in policy-making that seeks to benefit every user.”
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