Australian Regulators Launch Probe into Binance’s Derivat Business Following Goof Up
Binance News: The world’s largest crypto exchange has had to deal with problems with the Australian Securities and Investments Commission. Binance announced that it had liquidated the derivatives holdings for a number traders mistakenly classified as “wholesale investor” on Thursday. The corporation also revealed its plans to compensate those users who were adversely affected by the action.
Aussie Regulators Review Binance
ASIC has stated that it will conduct an assessment of Binance’s local crypto derivatives business. Binance is the largest cryptocurrency exchange in the world. According to a Friday statement by the regulator, Binance’s classification of “retail customers” and “wealthy clients” is one aspect of the review.
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Regular individuals are not allowed to trade derivatives. Binance requires customers to prove that they are wholesale investors to be able to trade futures. The exchange’s recent actions have prompted the Australian regulators to take notice and are currently examining the KYC and customer-onboarding processes.
According to reports, Changpeng Zhao, the trading platform’s head, has not yet reported the concerns to ASIC, in accordance to the obligations set out in its Australian financial service license. Zhao said that he would review the situation and determine if/when futures offerings can be reopened in Australia.
Growing Legal Problems in Binance
After the collapse of the FTX exchange a few years ago, regulators have increased their oversight over the cryptocurrency industry. The top digital asset exchange has been able to rise to the forefront of attention. Multiple regulatory agencies are currently investigating Binance’s global operations and its platform in the United States.
This particular piece of Binance news was met with widespread criticism and FUD. The current price of BNB is $306.33, which represents an increase of 0.71% over the past hour and an increase of 1.10% over twenty-four hours.
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