Following similar measures in Singapore, troubled crypto exchange Binance — the largest in the world by trading volume — is discontinuing its derivatives trading in Australia by year’s end, according to a company blog post on Tuesday.
Aussie traders will have 90 days to decrease or cancel their bets on options, futures, and leveraged tokens, since by Dec. 23 any outstanding open positions will be closed. The exchange had already set restrictions on options, margin products, and leveraged tokens in mid-August, building upon restrictions for new accounts put in place to be compliant with the country’s regulations.
Australian investors will still be able to use Binance Australia, a distinct company that is fully registered as a “digital currency exchange provider” with the regulator AUSTRAC.
“Our aim is to develop a sustainable ecosystem around blockchain technology and digital assets,” the company stated in a statement. “Binance welcomes advancements to our industry’s regulatory framework as they pose chances for the market actors to have stronger collaboration with the regulators.”
Regulatory and legal difficulties have dogged the exchange recently around the globe; just last week the firm stated it planned to establish a consolidated headquarters to better respond to regulators. Binance has also just removed itself from app stores in Singapore and terminated support for trading pairs and payment alternatives in the Singapore currency.
Forkast.News stated this week the exchange is under investigation for alleged insider trading and market manipulation by the U.S. Commodity Futures Trading Commission. A firm spokeswoman informed Forkast.News the company has “a zero-tolerance policy for insider trading and a stringent ethical code connected to any type of action that could have a detrimental impact on our customers or industry.”
Binance has been under investigation by authorities and law enforcement in the U.K., Italy, Germany, Japan, and South Africa. It also faces mounting concerns from unsatisfied clients throughout the world who incurred trading losses following technological problems the platform faced in May.
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