Binance Australia is closing accounts. What does this mean for traders?

As the cryptocurrency trading landscape continues to evolve, one of its most prominent exchanges, Binance Australia is closing accounts. This news comes as a surprise to many traders who are wondering what it means for their investments. In this blog post, we’ll explore why Binance Australia is shutting down and discuss some important considerations you should make if your account will be affected.

An investigation into Binance Australia Derivatives’ onboarding services revealed that it had incorrectly categorised end users as wholesale investors.

On February 23rd, Binance Australia Derivatives abruptly notified its users that it would be shutting down certain derivatives positions and accounts. This sudden announcement came as a surprise to many of the platform’s customers.

Many users who fell short of the requirements to be a “wholesale investor” were informed by various screenshots shared on Twitter that their positions would be permanently closed and they will no longer have access to Binance Australia Derivatives platform.

Users of the Binance Australia Derivatives platform have been informed that in order to access its services, they must provide sufficient evidence indicating they are registered as a “wholesale investor”.

In the notification, Binance Australia Derivatives revealed that they are in the process of drafting a remediation and compensation plan to return any due refunds as a result of their update.

As the steps taken were in accordance with Australian regulations, all affected users were immediately notified and their accounts closed.

Oztures Trading Pty Ltd is the main name of Binance Australia Derivatives, and its local Australian branch has been officially authorised by Oztures to serve as a corporate representative.

In its July 2022 publication, it is distinctly indicated that derivatives products are exclusively accessible to the Australian wholesale clientele.

Even so, users replied to Binance’s tweet with their issues. An Australian user stated that they were unable to stake their cryptocurrency due to regional restrictions while another complained about the lack of availability for Flexible Earn in Australia. To this, the Binance Support team responded and made a note of researching into it further.

As part of its “multi-stage” scheme to combat scams, Australia significantly strengthened its crypto space watchdogs during the beginning of February.

Crypto Tax Calculator Australia is a tax calculator application designed to help calculate their taxes they need to pay on their cryptocurrency transactions in Australia. With three plans available to choose from (Free trial, Basic and Advanced), calculating your taxes have never been easier.