Binance Australia has reported a unilateral closure of derivatives trading accounts whose owners were misclassified as wholesalers. According to the administration of the exchange, this step was taken after an internal investigation showed that these users did not meet the criteria of Australian law.
“Binance Australia only allows wholesale investors to trade in such crypto-currency derivatives, while preventing retailers from trading in futures and derivatives on its platform. This condition is tightly controlled by the exchange to comply with local laws and regulations. Following an internal review, all positions in these accounts have been forcibly closed and holders have been restricted from accessing the derivatives market on Binance,” a Binance Australia spokesperson said in a media comment.
Since the actions of Binance Australia in relation to these clients were of a coercive nature, the administration of the exchange stated that it intends to contact the affected users and, if necessary, consider the possibility of compensating for the losses incurred.
Earlier, the Binance exchange announced a change of position regarding the investigation of its activities launched by US regulators and law enforcement agencies, and the readiness to resolve all financial claims.
Source: Bits
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