Binance shuts down futures trading in Australia and closes all positions

The bitcoin rate reacted to the news with a sharp drop to $23 603

23.02.2023 - 13:15

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2 min

What’s new? On February 23, a Twitter user under the nickname illiquidity providoooor posted a screenshot with a notice of forced closure of all open positions in derivatives, as well as the account on the cryptocurrency platform Binance Australia Derivatives. The screenshot indicates that other Binance Australia services, including buying and selling cryptocurrencies, remain available.

holy fk binance just liq'd all AU perp positionsAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA pic.twitter.com/ayV3GmzwRb — illiquidity providoooor (@skyquake_1) February 23, 2023

What else is known? If users want to regain access to the derivatives platform, they will need to provide proof that they fit the criteria of a wholesale investor.

The platform’s team is working on a plan to address the impact of this decision and recover the funds. Binance’s support team will be in individual contact with each of the affected users.

Binance has already commented on this information. The exchange’s representatives noted that they had identified a small number of Australian customers who had been misclassified as “wholesale investors.” Under Australian law, they were required to inform these users and immediately close any derivatives positions they had.

Our team identified a small number of Australian users who were incorrectly classed as ‘Wholesale Investors’ on Binance.As per Australian regulation, we were required to inform these users and close any of their own derivative positions with immediate effect. — Binance (@binance) February 23, 2023

The bitcoin rate reacted to the news by falling from $24 325 to $23 603 in just a few hours. At 13:20 UTC, BTC has begun to recover and is trading at $24 116.

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