Binance Halts Several Crypto Trading Services in Australia, as Regulatory Issues Continue
In an announcement, Binance revealed its plans to stop offering certain products to Australian traders. Users from the region will have no access to leveraged tokens, options, and futures. The new guideline starts on September 24, 2021. What’s more, Australians have a 90-day period to shut down or minimize their positions.
An End to Derivative Trading in Australia
Binance continues to examine how it can relate well with global regulators. By stopping derivative trading in Australia, Binance believes it can be on the safe side of the law. Thus, Australian traders cannot complete their positions once December 23, 2021, arrives.
Furthermore, the exchange is going to close any open position after the deadline. Binance issued yet another directive to Australians in August 2021. In the report, Binance said it is restricting Australian users from opening an account with the exchange. It blocks traders from creating margin products, options, and leveraged token accounts.
The Compliance Journey
The majority of countries are against the product offerings that Binance extends to users. For instance, the Cayman Islands claims that the exchange is operating in the region illegally. The Island’s regulator says that Binance is providing digital asset services without a license.
Hosting such products in the region requires companies to obtain a waiver from Cayman’s monetary authority. The Netherlands had a similar argument with Binance in August 2021. As per the Dutch Central Bank, the platform is offering crypto services without any official registration.
The bank also says that Binance could expose users to illegal financing and money laundering activities. Other countries in conflict with Binance’s offerings include Holland, Japan, and the U.K.
Taking up Centralization
The latest development shows that Binance may adopt centralization in its operations. Binance’s head, Changpeng Zhao, admits that centralization can improve its compliance status. The statement means that the platform could reveal its headquarters in the future.
However, the downside is that governments might constantly monitor the customers’ financial dealings. Revealing such data breaks the basic rules in the crypto space concerning privacy. In the long run, involving financial regulators also allows Binance to work without any conflicts. Hence, the exchange can secure licensing support from global regulators.
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