Binance reported that Australian users accidentally closed their derivatives positions. The exchange later said that it notified the affected users and that their losses would be fully compensated.
Binance closes derivatives positions of Australian users
Binance Australia Derivatives users sent out push notifications on February 23 that the exchange began closing certain derivatives positions and accounts. According to screenshots posted by various users on Twitter, users who do not meet the “qualified investor” requirements have been told that all their positions will be closed and they will no longer be able to access the Binance Australia Derivatives Platform.
Regarding the closing positions, Binance said it had closed a derivatives position with “a small number of Australian users”, which it incorrectly classified as “qualified investors”. The crypto exchange reportedly complied with Australian regulations and immediately closed derivative positions, notifying affected users:
We have already contacted all affected users and we will fully compensate them for any losses incurred while trading derivatives on Binance.
CEO CZ says losses will be fully compensated
In his statements on the event, Binance CEO said, “losses caused by forced closing of positions will be compensated to users.” Users have been advised that they must meet the requirements to be classified as a “qualified investor” in order to continue using Binance Australia’s derivatives platform.
The notice went on to say that Australia Derivatives is working on a remediation and compensation plan for users it owes any refunds in light of the update. He then said that the actions followed were in accordance with local regulations in Australia, so users were contacted immediately and the affected accounts were closed.
However, users responded to Binance’s post on Twitter claiming that an Australian-based user can no longer stake their crypto due to regional issues. Another claimed that flexible earnings are no longer available in Australia, to which the exchange’s support team responded to look into the matter.
In Australia, Binance offers crypto derivatives trading only to qualified investors. A spokesperson for Binance said that the stock market giant discovered the discrepancy during its review of the onboarding process. These mislabeled accounts have since been closed. Holders of these accounts will no longer be able to access the derivatives market on the exchange.
About Binance Australia Derivatives
Binance Australia Derivatives is the official trading name of Oztures Trading Pty Ltd. Its affiliation with the leading exchange is that its local Australian branch is Oztures’ corporate authorized representative. In its official overview published in July 2022, it clearly states that derivatives are only available to Australian wholesale customers.
cryptocoin.com We mentioned earlier in February that Australia supports ‘multi-stage’ crypto regulations to combat fraud. The government is preparing to give new tools to the Australian Competition and Consumer Commission (ACCC), the country’s competition watchdog, to protect consumers from crypto-related scams. He noted that fraudulent losses involving crypto payments totaled $221 million in 2022.
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