Shocking! Binance Shuts Down Contract Positions, Leaving 500 Australian Users Affected

Key Points:

• Binance announced that the closing of contract positions affected approximately 500 users in Australia.
• However, this is undesirable because the exchange must implement compliance measures.
• Currently, the exchange is contacting affected users to determine a compensation plan.

In a share on Binance’s official Twitter page, the exchange announced that 500 users in Australia had been affected by the closing of its contract positions.

“500 users were affected by this remediation, which was a necessary action to ensure we stay compliant with local laws. We serve over 120 million users globally and every user is important to us. We are in contact with the affected users to firm up our compensation plans for them.”

However, this is an undesirable but necessary action to ensure that the market No. 1 exchange always complies with local laws.

As mentioned in an earlier Coincu News article, according to reports from some Australian community users, they cannot use Earn products, showing that service is not provided to their location due to regulatory restrictions.

Another user received prompts to close Binance Australia derivatives positions and accounts immediately unless he proves he is a wholesale customer.

In response to its clients, the exchange said that a small number of Australian users had been mistakenly classified as “Wholesale Investors” on its platform. To comply with Australian regulations, Binance notified these users and closed any of their individual derivatives positions immediately.

As the #1 cryptocurrency exchange in the market (in terms of trading volume), Binance serves over 120 million users globally, and every user matters. Besides, this exchange has always been known as one of the most regulated exchanges. Last year, Binance continuously sought out and appointed vital positions to strengthen comprehensive compliance.

Currently, the exchange is contacting the affected people for a compensation plan.

Binance is currently in constant legal troubles as its stablecoin BUSD previously faced a legal challenge, as the New York Department of Financial Services (NYDFS) forced Paxos to halt the issuance of new stablecoins.

The SEC is also blocking Binance’s $1 billion acquisition of Voyager Digital by identifying Voyager’s VGX token as an unregistered security.

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