Binance Australia Derivatives starts closing certain positions and accounts

Users of the Binance Australia Derivatives product have reported receiving unexpected notices on February 23 from the digital asset platform, which said that the company has begun closing some derivatives contracts and accounts.

Individuals who did not match the qualifications to be a “wholesale investor” were informed that all of their positions would be closed, and they would no longer be allowed to use the Binance Australia Derivatives Platform, according to screenshots that were uploaded on Twitter by a variety of users.

Users have been advised that in order to continue utilizing Binance Australia’s derivatives platform, they are need to provide the requisite proof to demonstrate that they satisfy the criteria for the role of “wholesale investor.”

The letter went on to explain that Binance Australia Derivatives is working on a remediation and compensation plan for customers to whom the company owes any refunds as a result of the change.

It was then said that the steps that followed were in accordance with the local legislation in Australia, and as a result, the users were informed quickly, and the accounts that were impacted were closed.

The company officially goes by the name Oztures Trade Pty Ltd, however its trading name is Binance Australia Derivatives. The local Australia office of Binance is a corporate approved agent for Oztures. This is the connection between the two companies.

It is made abundantly clear that derivatives items are only made available for wholesale customers located in Australia in the official overview that was issued in July of 2022.

Despite this, customers commented to Binance’s article on Twitter, with one user from Australia stating that they were unable to stake their cryptocurrency owing to complications in their location. Another user said that flexible earn was no longer accessible in Australia, which prompted the Binance support staff to react by saying that they will investigate the situation.

As part of its “multi-stage” strategy to combat frauds, Australia strengthened its watchdogs for the cryptocurrency field earlier in the month of February.