Binance, the world’s leading crypto exchange by trading volume has announced the closure of its crypto derivatives offerings in Australia. As per the announcement, the exchange would stop crypto futures, options, and leveraged tokens offering in Australia starting from 24th September. The exchange claimed the decision was based on compliance with the local regulations.
The Australian traders using crypto derivatives services via Binance would have 90-days starting from September 24 to close their current margin accounts. While no user would be able to put new margin calls or open new accounts. The accounts will be terminated and users won’t be able to reduce or close their position after 23rd December. The exchange said,
“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 fourth announcement by the exchange to close its crypto derivative offerings in a particular region or country. Earlier, the exchange has discontinued its derivatives offerings across Europe, Hong Kong, and South Korea.
Binance to Continue its Regulatory Overhaul?
Binance faced the wrath of nearly a dozen regulators from around the globe in the last quarter who all warned the exchange of non-compliance. The crypto exchange since then has taken a series of decisions to mend its ways with regulators. The CEO of the exchange Changpeng Zhao also claimed that they are working towards developing a centralized headquarters as well as local offices in every country they are operational in.
The regulatory dilemma for Binance comes at a crucial juncture when most of the competition is flourishing and expanding their services with compliance, and thus it becomes very important for the exchange to work with regulators to ensure full compliance with local rules.
The exchange is also facing the wrath of US regulators as CFTC reportedly opened an investigation into the exchange for market manipulation and insider trading.