Following similar moves in Singapore, embattled crypto exchange Binance — the largest in the world by trading volume — is ending its derivatives trading in Australia by year’s end, according to a company blog post on Tuesday.
Fast facts
- Aussie traders will have 90 days to reduce or close their positions on options, futures and leveraged tokens, as by Dec. 23 all remaining open positions will be closed. The exchange had already placed restrictions on options, margin products and leveraged tokens in mid-August, expanding upon restrictions for new accounts put in place to remain compliant with the country’s regulators.
- Australian investors will still be able to access Binance Australia, a separate company that is fully registered as a “digital currency exchange provider” with the regulator AUSTRAC.
- “Our aim is to create a sustainable ecosystem around blockchain technology and digital assets,” the company said in a statement. “Binance welcomes developments to our industry’s regulatory framework as they pose opportunities for the market players to have greater collaboration with the regulators.”
- Regulatory and legal woes have beset the exchange recently around the globe; just last week the company announced it plans to establish a centralized headquarters to better respond to regulators. Binance had also recently removed itself from app stores in Singapore, and ended support for trading pairs and payment options in the Singapore dollar.
- Forkast.News reported this week the exchange is under investigation for possible insider trading and market manipulation by the U.S. Commodity Futures Trading Commission. A company spokesperson told Forkast.News the company had “a zero-tolerance policy for insider trading and a strict ethical code related to any type of behavior that could have a negative impact on our customers or industry.”
- Binance has faced scrutiny from regulators and law enforcement in the U.K., Italy, Germany, Japan and South Africa. It also faces growing concerns from dissatisfied customers around the world who suffered trading losses following technical trouble the site experienced in May.
