Just In: CZ Says To Reconsider Opening Binance Derivatives in Australia

Binance Derivatives Australia: Some of the Binance derivatives investors in Australia were informed of closure of their accounts and positions on an immediate basis. The exchange said the sudden development was due to a classification error in its requirements for investors to be “wholesale investors.” Essentially, Binance said it was sticking to the criteria that the derivatives products will be available only to the wholesale investors. However, Binance CEO CZ said losses due to the account closure would be accordingly compensated.

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“Losses To Be Filled By Binance”

He also hinted about the chances of reviewing these closed accounts. The exchange said the issue was uncovered when they performed an investigation into the user onboarding process. On that basis, it was identified that some of the users were not eligible for holding derivatives positions. The immediate action involved closure of all open positions for the affected users. Also, access to the Binance Australia derivatives platform was blocked for the users.

Amid some fear and uncertainty around the sudden development, CZ said in a tweet,

“Users will be compensated for any loss incurred due to the force close of positions. Protecting users is #1 priority at Binance. We will review the situation and see if/when we can re-open futures offerings in Australia.”

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