Binance Axes Derivatives Trading in Australia

Leading crypto exchange Binance has announced that it will cease offering Australian customers futures, options, and leveraged tokens. 

Binance Cuts Offerings

Binance is continuing to limit its services in the face of regulatory pressure. 

The exchange announced Tuesday that Australian customers will no longer be able to trade crypto derivatives such as futures and options contracts. Additionally, leveraged tokens, which allow traders to gain exposure to derivatives without the risk of liquidation, will also be removed. 

In the announcement, Binance states:

“Effective from 2021-09-24 09:00 AM (UTC), existing Australian users will have 90 days to reduce and close their positions for these products. Users will be able to top-up margin balances to prevent margin calls and liquidations, but they will not be able to increase or open new positions.”

Once the 90 day grace period runs out, the exchange will forcibly close all open leveraged positions. Binance went on to say that it had decided to remove derivatives trading to comply with local regulations, although no announcement from Australian regulators has been made public. 

Australia is not the first region to be hit with restrictions on derivatives trading by Binance. In July, the exchange informed customers in the Netherlands, Germany, and Italy that they would have 90 days to close all futures, derivatives, and leveraged token positions.

Over the past several months, Binance has received warnings from multiple national regulators. In response, CEO Changpeng Zhao took to Twitter, saying that the company would take a more proactive approach to regulation. By winding down derivatives trading products in Australia, Binance will be hoping to avoid further regulatory scrutiny.

Disclaimer: At the time of writing this feature, the author owned BTC, ETH, and several other cryptocurrencies.

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Source: Read Full Article