Binance Australia has suspended several retail user accounts. According to the results of an internal investigation, it turned out that they were mistakenly classified as “professional investors” who have access to crypto derivatives trading.
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 exchange closed the positions of clients, about which they received a corresponding notification.
Users will be fully compensated for losses resulting from Binance’s actions.
In December 2021, the exchange curtailed the ability to trade crypto derivatives for users from Australia.
Bloomberg recently reported that Binance Holdings is considering terminating relationships with US business partners amid increased pressure from local regulators. Exchange CEO Changpeng Zhao denied these allegations.
Recall, on January 10, Signature Bank severed its connection with the international business of the exchange.
A month later it became known that NYDFS launched an investigation into Paxos, the exchange’s stablecoin partner. The regulator later ordered the company to stop issuing BUSD. She also announced her readiness to sue Paxos SEC.
Later, Reuters learned about the transfer of $ 400 million from Silvergate accounts to Changpeng Zhao’s company.
In December 2022, the agency reported that the US Department of Justice was investigating a possible violation of anti-money laundering regulations by the trading platform. CFTC examines the exchange’s offer of derivatives to US investors without proper product registration.
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