Binance cryptocurrency exchange has stated that its crypto derivatives offerings in Australia will be discontinued. Crypto derivatives traders will have 90 days to cancel their current margin accounts beginning September 24.
According to the news, the exchange will discontinue trading crypto futures, options, and leveraged tokens in Australia on September 24th. According to the exchange, the decision was made in accordance with local legislation.
Australian traders who use Binance’s crypto derivatives services will have 90 days to cancel their current margin accounts beginning September 24.
No one would be able to place new margin calls or create new accounts. After December 23rd, all accounts will be closed, and users will no longer be able to reduce or close their positions. According to the conversation,
“Our aim is to create a sustainable ecosystem around blockchain technology and digital assets. Binance welcomes developments to our industry’s regulatory framework as they pose opportunities for the market players to have greater collaboration with the regulators. We are committed to working constructively in policy-making that seeks to benefit every user.”
This would be the exchange’s fourth declaration that it would stop trading crypto derivatives in a certain region or country. Previously, the exchange had stopped offering derivatives in Europe, Hong Kong, and South Korea.
Binance’s regulatory saga
In the last quarter, Binance faced the wrath of about a dozen regulators from around the world, all of which warned the exchange of non-compliance.
Since then, the crypto exchange has made a number of measures to improve its relationship with regulators. Changpeng Zhao, the exchange’s CEO, has stated that they are trying to establish a centralized headquarters as well as local offices in each region where they operate.
Binance’s regulatory quandary arises at a critical juncture in the industry, when most competitors are flourishing and growing their services while adhering to local regulations, making it critical for the exchange to collaborate with regulators to ensure full compliance with local legislation.
The CFTC has apparently initiated an inquiry into the exchange for market manipulation and insider trading, and the exchange is also facing the wrath of US regulators.