Binance Australia unilaterally closes users’ potential positions and accounts

On the evening of February 23, the crypto neighborhood on Twitter was abuzz with information that Binance had abruptly stopped delivering futures providers to some Australian end users.

According to lots of Twitter end users, Binance Australia has sent an alert to shut the derivatives trading account with quick result and liquidate all open orders.

Announcement screenshot displaying that Binance Australia has determined to shut potential positions and users’ accounts. The exchange mentioned these wishing to reopen a futures account will have to offer new data to demonstrate they are a expert investor underneath Australian rules. In addition, other functions this kind of as purchasing and marketing cryptocurrencies on Binance Australia can even now be applied ordinarily.

It is really worth mentioning that in accordance to consumer suggestions, the notification is sent in a rather late time frame, among 22:00 and 23:00 neighborhood time, which usually means that traders who go to bed early will not be there. Not to mention that the result of the notification is quick, rendering lots of individuals incapable of reacting and staying liquidated.

A portion of traders are expressing outrage at Binance’s sudden action.

The cryptocurrency marketplace also professional a brief-phrase dump on the evening of February 23 with a massive volume of product sales, with some theories suggesting it was a direct consequence of Binance Australia liquidating consumer orders.

In its official announcement, Binance mentioned that it found that a “small number” of Australian end users have been incorrectly classified as “Professional Investors”, and hence had to shut their accounts to stay away from breaking the law. The exchange claims to have contacted the impacted end users and compensated them for all damages.

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