Bitcoin btc
$ usd

Aussie Regulator Launches Probe into Binance Derivatives Trading

1 min
Updated by Geraint Price
Join our Trading Community on Telegram

In Brief

  • On Thursday, Binance closed derivative position of some traders due to incorrect classification.
  • The Australian Securities and Investment Commission (ASIC) will review Binance's derivative business.
  • CZ asked users to avoid FUD.
  • promo

The Australian Securities and Investment Commission (ASIC) has announced a review of Binance’s derivatives business in the country.

Binance, already battling with the regulatory challenges in the U.S., has landed in trouble with the ASIC. On Thursday, Binance closed the derivatives positions of some traders incorrectly classified as “wholesale investors.” The company also announced compensation plans for the users affected by the action.

The ASIC does not allow retail investors to trade derivatives. Hence, Binance’s customers must submit evidence proving that they are wholesale investors to trade derivatives. But, Binance’s action has drawn the attention of the Australian regulator – ASIC, and they are now conducting a targeted review of the local derivatives business of the company.

Exchange Failed to Report Mishap to Australian Regulator

An ASIC spokesperson told Bloomberg they are “aware of Binance’s social media posts overnight stating that it had incorrectly classed a group of Australian consumers as wholesale investors.”

Even though it closed the derivative trades from ineligible traders, according to the spokesperson, it has not yet completed its obligations of reporting to regulators. Now, the Australian regulatory body will investigate the classification of Binance regarding retail and wholesale clients.

Changpeng Zhao, the Chief Executive Officer of the firm, clarified that they are reviewing the situation. He further asked users to ignore FUD (Fear, Uncertainty, and Doubt).

In contrast to Binance’s claims, a wholesale client alleges that their positions were also closed. They tweeted that they fulfilled the requirements with a wholesale client certificate, yet they were not given advance warnings or a grace period.

Got something to say about Binance, ASIC, or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or Twitter.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.

Frame-2264-1.png
Harsh Notariya
Harsh started investing in crypto during the 2021 bull market. He took the opportunity of the market crash in May to learn more about Bitcoin and blockchain technology. Since...
READ FULL BIO
Sponsored
Sponsored