One of the world’s largest cryptocurrency exchanges says it is discontinuing some of the products and services it offers Australian customers.
Crypto exchange Binance says that as of September 24th, users in Australia will not be allowed to increase or open new futures, options, and leveraged token positions. Further, all open positions in these categories will automatically be closed starting on December 24th.
The cryptocurrency exchange says the decision is motivated by the need to “comply with local regulations.”
“Our aim is to create a sustainable ecosystem around blockchain technology and digital assets. Binance welcomes developments to our industry’s regulatory framework as they pose opportunities for the market players to have greater collaboration with the regulators.
We are committed to working constructively in policy-making that seeks to benefit every user.”
Binance’s decision to withdraw futures, options, and leveraged tokens offerings in Australia comes amid a series of regulatory challenges the exchange faces worldwide.
In June, United Kingdom regulator Financial Conduct Authority announced that Binance Markets Limited was “not permitted to undertake any regulated activity in the UK.” Subsequently, major banks such as Barclays and HSBC blocked payments to the cryptocurrency exchange.
In response to the regulatory pressure, Binance has enhanced its Know Your Customer (KYC) and Anti-Money Laundering (AML) policies.
Binance has also reduced the leverage option for new users to a maximum of 20x, as well as ended support for stock tokens.
The crypto exchange, which famously has no official headquarters, is reportedly now looking to set up a central location.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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