The top cryptocurrency exchange Binance has stopped offering derivatives trading in Australia. The exchange announced this news earlier today, saying it intends to stop offering its Australian clients futures, options, and leveraged tokens. Per the exchange, these changes are part of its goal to comply with local regulations.
According to the announcement, Binance intends to stop derivatives trading at 9.00 AM UTC on September 24. The exchange has offered Australian users 90 days to reduce and close any open positions for futures, options, and leveraged tokens. To ensure the process runs smoothly, users can top-up margin balances to prevent margin calls and liquidations.
Nevertheless, they are not able increase their positions or create new ones. After 11:59 PM UTC December 23, users will no longer be able to manually reduce or close their positions. What will happen is Binance will close all open positions after this deadline.
The exchange also stated that the changes are part of its mission to create a sustainable ecosystem around blockchain technology and digital assets. Including being open to embracing developments to the nascent sector’s regulatory framework because they offer market players new opportunities to team up with regulators. Binance added that it is devoted to working constructively to help forge policies that benefit each user.
This news comes as regulators across the globe continue cracking down on crypto platforms. Australia’s Securities and Investment Commission (ASIC) recently warned citizens against trading crypto-related products through unlicensed firms. ASIC urged investors to be wary of investing in such products if the organization offering them does not have an AFS or AML license.
The regulator further noted that any organization wishing to offer any crypto-related products in the country has to register with it. ASIC specified that any organization offering options, futures, leveraged tokens, and binary options should obtain a license. While the agency did not specifically mention Binance, the exchange backing out of the country means it was not licensed.
This year, Binance has been popular among regulators that claim the exchange has been operating in their jurisdictions without the necessary permissions. As a result, financial watchdogs from Malta, the Cayman Islands, Japan, Italy, Brazil, Singapore, the Netherlands, Canada, Germany, and the UK have directed Binance to either halt offering some products or stop offering trading services altogether.