Binance Australia Derivatives users reported abrupt notifications sent out by the digital assets platform on Feb. 23, saying that it is beginning to close certain derivatives positions and accounts.
According to screenshots posted by several users on Twitter, users who did not meet the requirements to be a "wholesale investor" were told that all their positions would be closed and they would no longer be able to access the Binance derivatives platform. Australia.
Binance closed derivatives positions for many Australian users abruptly #Australia #binance pic.twitter.com/4t1gL08oK6
โMoidul Islam (@Mi_moidulislam1) February 23, 2023
Users have been informed that in order to continue using the Binance Australia derivatives platform, they must submit the necessary evidence to meet the requirements to be classified as a "wholesale investor".
The notification went on to say that Binance Australia Derivatives is working on a remediation and compensation plan for users who are owed any refunds in light of the update.
It then said the actions that followed were in line with local regulations in Australia, therefore users were contacted immediately and affected accounts closed.
Our team identified a small number of Australian users who were incorrectly classified as "Wholesale Investors" on Binance.
Under Australian regulation, we were required to notify these users and close any of their own derivative positions with immediate effect.
โBinance (@binance) February 23, 2023
Binance Australia Derivatives is the official trading name of Oztures Trading Pty Ltd. The relationship with Binance is that its local branch in Australia is an authorized corporate representative of Oztures.
Related: Australian Regulator Flagged FTX Concerns Months Before Collapse: Report
in his official general description published in July 2022, it clearly states that derivative products are offered to Australian wholesale customers only.
Nonetheless, users responded to Binance's Twitter post with an Australian-based user claiming that they could no longer stake their crypto due to regional issues. Another claimed that flexible earning was no longer available in Australia, to which the Binance support team responded to investigate the issue.
In early February, Australia beefed up its watchdogs for the crypto space as part of its 'multi-stage' plan to combat scams.
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