One of the world’s largest cryptocurrency exchanges, Binance has been undergoing extreme scrutiny from regulators across the globe. The regulatory pressure surrounding the exchange has been surging by the day. This has further pushed the exchange to shut shop in several parts of the world. Australia was the latest country to lose certain services of Binance.
The crypto-verse has been subject to heat from regulators despite being known for its decentralized nature. Governments have started to pry into the crypto industry just as its demand began to surge. Binance recently had a major fallout with not just one regulator, but with regulators from several different regions. As the exchange continues to put in place better compliance methods, it was seen pulling the plug on various services it offers.
In a recent announcement, the exchange revealed that it would no longer offer futures and options trading services to its Australian customers by the end of this year. In a detailed post, Binance noted that Australian users would be given a period of 90 days to reduce and close their positions on derivative offerings.
Binance Australia to end derivatives offerings by December
The exchange noted that it intends to comply with the regulations put forth by the Australian government. In order to do so, the exchange would be discontinuing futures, options as well as leveraged tokens services in the country.
With a total of 90 days starting from 24 September 2021, Australian users would not be able to reduce or close their positions post 23 December 2021. Any positions that exist after this date would be closed automatically.
Additionally, during this period, Aussie users would still have access to certain services like being able to top-up margin balances to avoid liquidations and margin calls. However, the option of increasing or opening up new positions would not be allowed.
A spokesperson from the exchange reportedly stated,
“We proactively review our product offerings and activities on an ongoing basis, against user demand, evolving regulatory requirements, and future opportunities, to determine changes and improvements.”
The exchange clearly seemed to be enduring immense loss following the hold on an array of its services in its numerous branches. Recently CZ even admitted to the need for a “centralized entity.”