Binance to Cease Offering Derivatives and Leverage to Australian Users
The leading cryptocurrency exchange continues to take steps to be regulatory compliant after regulators from all over the world went after Binance for offering crypto products to their citizens not aligned with the regulations.
On Tuesday, Binance said it would cease offering futures, options, and leveraged tokens to its existing Australian users before this month is over.
“Binance welcomes developments to our industry’s regulatory framework as they pose opportunities for the market players to have greater collaboration with the regulators,” said the exchange.
Effective September 24, existing Australian users will have three months until late December to reduce and close their opened positions. While allowed to top-up margin and balanced to prevent margin calls and liquidations, users won’t be able to increase or open new positions.
After Sept 23, 11:59 PM (UTC), users won't be able to manually reduce or close their positions, and afterward, all remaining open positions will be closed.
“Our aim is to create a sustainable ecosystem around blockchain technology and digital assets,” said the exchange in its official announcement.
“We are committed to working constructively in policy-making that seeks to benefit every user.”
Recently, Binance implemented compulsory KYC for all of its users and restricted futures trading in a number of countries, including Hong Kong and Germany.
Binance Holdings is also currently being investigated by US officials for possible insider trading and market manipulation. CFTC has actually expanded its probe into Binance, which was already reviewing whether it allowed US residents to buy and sell derivatives linked to crypto assets.