Binance Australia closes derivative trading accounts of some wholesale investors

Quick Take

  • Binance closed the derivatives trading accounts of some wholesale investors in Australia, following an internal investigation.
  • It found that these users did not actually meet the requirements of wholesale investors.

Binance closed the derivative trading accounts of some wholesale investors in Australia after an investigation found that they didn't meet the criteria for such investors.

In Australia, Binance only offers crypto derivatives trading to wholesale investors. A spokesperson for Binance told The Block that the exchange giant discovered the discrepancy during a review of its onboarding process. These incorrectly labelled accounts have since had their positions closed. The owners of these accounts will also not be able to access the derivatives market on Binance anymore.

Binance stated that it had informed affected customers of the restrictions on their accounts. "Binance Australia Derivatives are working on a remediation and compensation plan," said the spokesperson.

RELATED INDICES

Update: This article and headline has been updated to clarify that this affected some wholesale investors.


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About Author

Osato is a news reporter at The Block as part of the crypto ecosystems team that focuses on DAO governance, staking, blockchain layers, and DeFi. He was previously a news reporter at Cointelegraph. Based in Lagos, Nigeria, he enjoys crosswords, poker, and attempting to beat his Scrabble high score. Follow him on Twitter at @OsatoNomayo.

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