Binance founder and CEO Changpeng Zhao / Photo credit: MX Global
Binance Australia has stopped derivative positions for 500 accounts after it incorrectly tagged a “small number” of users in the country as “wholesale investors” on its platform.
As part of Australian law, only wholesale investors – or those who have extensive previous investing experience, broadly speaking – are allowed to trade futures and financial derivatives products.
“Five hundred users were affected by this remediation, which was a necessary action to ensure we stay compliant with local laws,” the company tweeted. “We are in contact with the affected users to firm up our compensation plans for them.”
Binance CEO Changpeng Zhao said that the company will “review the situation” to gauge when or if it can reopen its futures products in Australia.
Meanwhile, regulators in Australia are reportedly reviewing the situation.
The crypto major entered Australia in 2020. At the time, Zhao said that the country is one of the global leaders in crypto and was a “big market for the industry.”
In 2021, Binance Australia named Leigh Travers as CEO. He previously headed DigitalX, the world’s first publicly listed blockchain tech firm.
See also: Org Chart: A closer look at the people who run Binance
Editing by Thu Huong Le and Lorenzo Kyle Subido
(And yes, we’re serious about ethics and transparency. More information here.)
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