Binance Review Closure of Crypto Derivative Trading Service in Australia

Binance consider closing derivative trading in Kangaroo Country. (Photo; Doc. CryptoNews)

JAKARTA - A number of Binance derivatives investors in Australia have been informed that their accounts and positions will be closing soon. This closure occurred due to a misclassification in the investor requirements to become a "wholesale investor". This was announced out of the blue by Binance, who said that they still adhere to the criteria that derivative products will only be available to wholesale investors.

However, Binance did not ignore the losses suffered by investors as a result of this closure. Binance CEO CZ said that Binance will fill in any losses incurred as a result of the forced closing of positions. He also said that Binance is considering reviewing the closed accounts.

The exchange said the issue was discovered when they conducted an investigation into their user acceptance process. They identified that some of the users were not eligible to hold derivative positions.

Therefore, the action taken is to close all open positions for the affected users. In addition, access to derivatives platform Binance Australia is also blocked for users.

Protecting users is a top priority at Binance. Having said that, CZ said that Binance will review the situation and see if/when they can reopen futures offerings in Australia.

Amid the fear and uncertainty surrounding this sudden development, investors can be relieved that they will be compensated for any losses incurred.

Even though Binance ran into problems with investor requirements, they remain committed to providing the best service for their users. Investors can expect that Binance will work to ensure that an incident like this does not happen again in the future. Binance also vows to continue to prioritize the safety and security of user funds worldwide.