Binance forced to close customer accounts in the face of Australian regulation

No more crypto derivatives – The regulatory vice on Bitcoin (BTC) and cryptocurrencies are getting tighter every day. If in the European Union the objective is now toprevent banks from getting exposed to cryptosit turns out that in AustraliaThose are the derivative products (derivatives) of digital assets that are strictly regulated. The giant Binance pays for it, and must close accounts emergency customers.

Binance must bring its Australian derivatives subsidiary into compliance

The subsidiary Oztures Trading Pty Ltd of the Binance group, known as Binance Australia Derivativesrecently had to make a major regulatory tightening vis-à-vis some of its customers.

It is indeed supposed to propose its offer of cryptocurrency derivatives only to Australian customers said ” wholesale “ (wholesale customers). Understand here the very rich investors. But obviously a few hundred customers individuals – normally too modest therefore – fell through the cracks. Result: their account derivatives been closed overnight!

“Our team has identified a small number of Australian users who have been incorrectly classified as ‘big investors’ on Binance. In accordance with Australian regulations, we have been required to notify these users, and to close all their derivatives positions with immediate effect.
We have already contacted all affected users and will fully compensate them for losses incurred while trading derivatives on Binance.
500 users were affected by this corrective action, which was a necessary action to ensure that we remain compliant with local laws. »

>> For your crypto purchases, register on the eToro platform (commercial link) <<

Crypto-financial products reserved only for very wealthy investors

As you can see on the chart below, having the privilege of trading cryptocurrency derivatives is, indeed, not offered to everyone. To hope to reach the title very select of wholesale investors – and apart from the particular statuses of professional and company -, it is necessary, for example, to be a “very wealthy individual” (High Net Worth Individual).

This last qualification implies having either a wealth of 2.5 million Australian dollars (1.6 million euros), or to have a gross annual income of 250,000 Australian dollars (160,000 euros per year).

The only ” good news in these sudden position closures is that Binance promises to compensate for losses small fish that had passed themselves off as whales. On the other hand, it should be noted once again that, unfortunately, there is a strong regulatory trend being created everywhere in the world which wants to exclude individuals investments in cryptocurrencies, to reserve them for the ultra-rich.

The time for regulation has come, and with it the time for uncertainty. Don’t wait any longer to prepare for the future, register now on eToro and start getting acquainted with the exciting world of blockchain technology (commercial link).