• Binance recently closed the positions of some Australian traders after incorrectly labeling them as “wholesale investors”
• This decision has stirred debate and controversy across social media platforms
• The exchange is offering compensation for losses incurred while trading derivatives on Binance
Binance Closes Positions of Australian Traders
Binance, a crypto exchange, recently confirmed through their official Twitter handle that it had closed the positions of some Australian traders. The company had incorrectly classified these users in the country as „wholesale investors.“
Regulatory Requirements
The closing of positions was due to the need to comply with Australian regulations. Binance has contacted all impacted users and will provide full compensation for any losses incurred while trading derivatives on the platform.
Community Response
The decision has caused an uproar among members of the crypto community, who have been debating and discussing this move on social media platforms. A screenshot of an official message sent by Binance to those affected was shared across these channels. According to this statement, accounts were liquidated or „nuked“ and users are still able to access the platform for spot trades. To regain access to derivatives, such as Perpetual Futures Contracts, new information must be provided in order to meet regulatory requirements.
Compensation Plan
Binance is currently working on a remediation and compensation plan for those affected by this decision. If any refunds or payments are owed by the exchange, their Customer Support Team will contact users directly with further details once they have identified any issues with current or closed accounts. As required by Australian regulations, participants must meet certain criteria in order to qualify as “sophisticated investors” before gaining access to derivatives markets.
Final Thoughts
Binance’s decision to close these positions has caused waves throughout the crypto community and raised questions about how exchanges should operate when it comes to complying with regional regulations. It remains unclear whether recent activity or all activity since account opening will be covered under their compensation plan; however, customers can expect contact from customer support teams if refunds or payments are owed.