Binance Australia closes several accounts on its derivatives platform

The Australian arm of Binance paused servicing several retail user accounts. An internal investigation found they had been incorrectly classified as “professional investors” with access to crypto-derivative trading.

Our team identified a small number of Australian users who were incorrectly classed as ‘Wholesale Investors’ on Binance.

As per Australian regulation, we were required to inform these users and close any of their own derivative positions with immediate effect.

— Binance (@binance) February 23, 2023

The exchange closed the clients’ positions, notifying them accordingly.

Users will be fully compensated for losses arising from Binance’s actions.

In December 2021 the exchange rolled back the ability to trade crypto-derivatives for Australian users.

Bloomberg recently reported that Binance Holdings is considering the possibility of ending relations with US business partners amid growing pressure from local regulators. The exchange’s CEO Changpeng Zhao rejected these claims.

On 10 January, Signature Bank severed ties with the exchange’s international business.

NYDFS initiated an investigation into Paxos, the exchange’s stablecoin issuer partner. Later the regulator ordered the company to stop issuing BUSD. announced the SEC that it was prepared to sue Paxos.

Reuters later learned of a transfer of $400 million from Silvergate to Changpeng Zhao’s firm.

In December 2022 the agency said that the U.S. Department of Justice is conducting an investigation into possible AML violations by the trading platform. CFTC is examining the exchange’s offer of derivatives to American investors without proper product registration.