TL;DR Breakdown
- Binance exchange to end derivatives trading in Australia, December.
- Exchange end service to achieve improved relationship with regulators.
Number one crypto exchange, Binance, has announced it would be halting its derivatives offerings (Futures and Options Trading) by December.
This is as regulatory clampdown against the top exchange firm pressures it to stop providing some of its services, with users in Australia being the latest victim.
Binance users who trade derivatives in the country have 90 days to reduce and close their positions on options, futures, and leveraged tokens.
“Users will be able to top-up margin balances to prevent margin calls and liquidations, but they will not be able to increase or open new positions,” the statement read.
In Binance exchange announcement on Tuesday, the firm said by Dec 23, users will no longer be able to reduce their positions manually, and all remaining open positions will be closed automatically.
Regulatory concern? Why Binance is closing derivative trading in Australia
A spokesperson of the exchange failed to attribute recent clampdown and continuous strikes from regulators as their reason for closing derivative trading in Australia.
Instead, the person said it’s simply a strategy for improvement.
“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 spokesperson said in an interview.
However, the exchange in its release stated that it made the move amid its attempts to “have greater collaboration with the regulators.”
However, halting derivative trading in Australia comes after August’s restrictions on options, margin products, and leveraged tokens where new accounts were barred from engaging in the country.
The embattled Binance brand has repeatedly been under fire from regulators globally, including in the U.S., where it has been accused of insider trading, among other accusations. This led to multiple internal changes in several branches.
Changpeng Zhao, CEO of Binance, recently said the exchange would look for a new headquarters and improve its structure.
