Binance Australia shuts down derivative trading accounts of retail users

Binance shut down the derivative trading accounts of retail users in Australia after it mistakenly classified such customers as wholesale investors.

For Australians, Binance only offers crypto derivatives trading to wholesale investors. A spokesperson for Binance told The Block that the exchange giant discovered the discrepancy during a review of its onboarding process. These incorrectly labelled accounts have since been liquidated. The owners of these accounts will also not be able to access the derivatives market on Binance anymore.

Binance stated that it had informed affected customers of the restrictions on their accounts. “Binance Australia Derivatives are working on a remediation and compensation plan,” said the spokesperson.

The news has sparked some volatility in the crypto market, with bitcoin dropping below $24,000 temporarily.