Cryptocurrency exchange in trouble with US regulators to Binance a blow may also come from Australia.
Australian Securities and Investments Commissionthe world’s largest cryptocurrency Binance, the exchange, said it was conducting a review of its local derivatives business.
Cryptocurrency Exchange Binance Under Review by Australian Regulatory Authority
A spokesperson for the regulatory agency said today that the review includes Binance’s classification of individual customers and corporate customers.
Binance previously tweeted that some Australian users had closed their derivatives positions because they were mistakenly classified as institutional investors.
Our team identified a small number of Australian users who were incorrectly classified as ‘Wholesale Investors’ on Binance.
As per Australian regulation, we were required to inform these users and close any of their own derivative positions with immediate effect.
— Binance (@binance) February 23, 2023
The company said it will compensate affected customers for any losses suffered. A Binance representative said in a statement that 500 users were affected and the shutdown was necessary to comply with local laws.
A spokesperson for ASIC said the regulator was “aware of social media posts stating that Binance had mistakenly classified a group of Australian clients as institutional investors.”
“Australia has not yet reported these matters to ASIC in accordance with its obligations under the financial services license,” the spokesperson added.
Billionaire Changpeng Zhao’s crypto exchange has come under scrutiny as regulators stepped up their scrutiny of the crypto industry after the collapse of the FTX exchange last year.
“We will review the situation and see when we can reopen futures offerings in Australia,” Zhao said earlier today, ahead of the ASIC announcement, adding that “please ignore FUD.”
FUD; It is an abbreviation for fear, uncertainty and doubt.
*Not investment advice.
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