Binance Cancels Crypto-Derivatives in Australia

August 19, 2021, | AtoZ Markets-Binance announced to its Australian clients the restriction of the opening of new accounts for options, margin products, and leveraged tokens. Following ASIC's warning, the cryptocurrency giant canceled its offering on crypto derivatives in Australia.

Meanwhile, this latest measure came after the restriction already imposed by Binance on Australian users to open new futures accounts. Likewise, the company stopped offering crypto margin trading with the Australian dollar, the British pound, and the euro.

"Binance constantly evaluates its offering of products and services," the company stated in the announcement to its clients.

Countries Where Binance Has Stopped Offering Derivatives

Binance has stopped offering derivatives trading in Hong Kong, Germany, Italy, and the Netherlands. In addition, it plans to restrict the distribution of derivative products throughout Europe.

"Our goal is to create a sustainable ecosystem around blockchain technology and digital assets. We hope that these efforts will help the industry grow in the local market in the long term," Binance added.

What Did the ASIC Say?

The Australian Securities and Investments Commission (ASIC) has mentioned multiple reports of Australian citizens who have used unlicensed platforms to trade crypto-related financial products, such as options and futures, and have experienced significant losses of their money.

The entity has emphasized the risks of these platforms due to excessive leverage, platform outages, and also unfair liquidations.

Most recently, the regulatory agency flagged 12 companies including two top crypto exchanges Bybit and Huobi, while more than a dozen regulators warned against the top crypto spot and derivatives platform, Binance.

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