• Binance has announced the discontinuation of a number of cryptocurrency trading services in Australia

  • Binance, a cryptocurrency exchange, has announced the end of several of its cryptocurrency trading services in Australia. This is the exchange’s most recent attempt to keep up with regulatory authorities.

    Binance informed their ‘fellow Binancians’ of their decision to stop offering a number of their products in Australia, including Futures, Options, and Leveraged Tokens, in an announcement. In addition, they stated their commitment to “working constructively in policy-making,” which has led to increased compliance efforts in a number of global regions.

    The statement provided noted the following:

    “Effective from 2021-09-24 09:00 AM (UTC), existing Australian users will have 90 days to reduce and close their positions for these products. Users will be able to top-up margin balances to prevent margin calls and liquidations, but they will not be able to increase or open new positions. Users will no longer be able to manually reduce or close their positions after 2021-12-23 11:59 PM (UTC). Thereafter all remaining open positions will be closed.”

    Binance has been sued by global regulators in the United Kingdom, Hong Kong, Malaysia, Japan, Singapore, and Thailand, primarily over the products they offer and their noncompliance with regulatory laws. Binance has also been accused of market manipulation and insider trading. The CFTC is investigating Binance for insider trading and market manipulation, according to reports published just last week.

    Despite its legal woes, Binance has shown that it is committed to complying with regulatory requirements, with Binance CEO Zhao Changpeng stating his intention to work with regulators and even move closer to a centralized system of operations. He made the observation.

    “As a centralised exchange, we’ve realized that in order to work well with regulators, we need a centralised entity. Clear records of stakeholder ownership, transparency, and risk controls are required.”

    Rather than fighting regulators, as a number of high-profile crypto companies have done, Binance appears to have taken a ‘bend’ rather than a ‘break’ approach to regulatory flexibility. While this may annoy some of the most ardent supporters of decentralisation, Binance’s strategy appears to be sound in the long run, as global regulators tighten their grip on the crypto industry.

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