Aussie Regulators Review Binance Australia's Derivatives
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Aussie Regulators Review Binance Australia's Derivatives

written by John Murphy | February 28, 2023

After one day, when the Derivatives of Australia sent notifications related to the closing of accounts to users which was mistakenly classified. It is announced by regulators of Australia that they are looking into the company.  

On Feb 23, an unanticipated message was sent to a bunch of people by Binance Australia Derivatives. The message announcing that their accounts will be closed straight away due to the false categorization of some users as ”wholesale clients”. 

Aussie Regulators Review:

 This proceeding caused a gust of responses on social media. the Australian Securities and Investments Commission (ASIC) disclosed the following day that due to this they are going to be regulating research of Binance’s Local Derivatives operations.  

On Feb 24, an allegation from the spokesperson of the regulator was issued. This stated that the review of the Australian Securities and Investments Commission (ASIC) will be involving the classification of wholesale clients and also retail clients. Moreover, the spokesperson declares, 

“It has not yet reported these matters to ASIC in accordance with its obligations under its Australian financial services license.” 

Nonetheless, the spokesperson declared that the regulator is also attentive to the posts posted by Binance’s social media. The posts were uploaded after a little while when the users started to post screenshots on Twitter that were related to the sudden message sent to them.  

Is Binance Compensating The Victims Of The Incident?

A few hours later since they posted their initial posts, it was announced by Binance that the effect of this remediation occurred to about 500 users. 

‘Five hundred users were affected by this remediation, which was a necessary action to ensure we stay compliant with local laws. We serve over 120 million users globally and every user is important to us. We are in contact with the affected users to firm up our compensation plans for them.’  

Furthermore, another spokesperson of Binance hammered away that this exchange was betrothed to adhering to the local Australian laws. 

The CEO and Co-founder of Binance, Changpeng ‘CZ’ Zhao stated in his tweet that compensation will be given to all the users that were affected due to this incident. They are also going to compensate for all the losses that occurred to users and will ignore the FUD. 

Zhao further stated that their company is trying to look into this situation that occurred so that they can clarify if there are going to be any reopening futures in Australia that are going to be considered as an option. 

CEO Of Binance’s Response:

He states, 

‘Users are going to be compensated for any loss incurred due to the force of close positions. Protecting the users is the #1 priority. We will review the situation and see if or when we can re-open future offerings in Australia. Thank you for your understanding and please ignore FUD.’  

Binance is a cryptocurrency that is considered and known to be one of the biggest cryptocurrency exchanges in the world. Not only this but also the company has been nothing but honest and open about their efforts that are going to ensure and help with regulatory requirements of their considered local operations.