Why is Binance shutting down crypto derivatives for Australian customers?

September 22, 2021 01:42 PM AEST | By Sonal Goyal

Why is Binance shutting down crypto derivatives for Australian customers? — Image source: © Murmakova | Megapixl.com

Why Binance halts crypto derivative products from the Australian market?

The move can be seen as an attempt by Binance to comply with the global regulators. By withdrawing crypto derivatives products, Binance, the biggest crypto exchange in the world by volume, intends to eliminate itself from the regulatory compliance requirements.

The announcement flow’s the restrictions that were introduced by Binance last month regarding the opening of new accounts for leverage tokens, margin products, future and options. In addition to this, in order to appease the regulators, margin trading in Australian dollars, the Euro and the sterling were also stopped in July.

Source: Company release, Changes to Binance offerings in Australia, 21 September 2021

Binance under regulator’s watch globally

Globally, many countries are critical of the products that Binance offers to its users. For example, as per a media report. Cayman Islands claims that Binance is operating in the region without a license.

The Netherlands also highlighted a similar situation in August 2021. the Dutch Central Bank mentioned that the platform is extending crypto services with no official registration.

Other countries disagreeing with Binance’s products are the UK, Japan and Holland.

Bottom Line

Binance can take all the necessary measures and steps to comply with the different regulations and maintain its position as the largest crypto platform in terms of volume. To gain the trust of the regulators, customers and financial institutions, the decentralized platform always attempts to comply with the regulations by constantly assessing their products offerings.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.