Binance reacts to regulators warning and restricts derivatives in Australia

Binance announced on Thursday (19) the immediate suspension of new cryptocurrency derivative product accounts in Australia.

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In an official statement, the exchange informs that, from now on, users in the country will not be able to open new options accounts, margin products and leveraged tokens. The measure comes after the brokerage has already restricted, in July, the creation of new futures accounts on the platform.

The brokerage says the decision makes it “one of the first major exchanges of cryptocurrencies and digital assets to proactively restrict access to derivative products for Australian users.” The company, however, did not inform deadlines to suspend the offer of derivatives for existing accounts, unlike what happened recently in three European countries.

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The measure takes place exactly the day after an alert issued by the Australian Securities and Investments Commission (ASIC), an agency equivalent to the Brazilian Securities and Exchange Commission (CVM). On Wednesday (18), the regulatory agency urged Australians to “be cautious when investing in financial products related to cryptoactives, such as options and futures, through unlicensed entities”.

Binance moves to please regulators

The announcement is the latest in the pile of changes implemented by Binance to please regulators around the world. Following the warning from the UK authority, the exchange was placed on the banned list of banks like Barclays and Santander, and soon halted deposits and withdrawals from the SEPA network, Europe’s main banking corridor.

Binance then started a wave of measures to comply with regulatory requirements around the world, including increased customer identification requirements (KYC) and, especially, strengthening of the compliance team.

The hiring of former SEC director Brian Brooks as CEO of Binance in the US did not work, but the company is on the path of strengthening ties with regulators. The exchange recently announced a former US Treasury investigator as head of the money laundering enforcement industry.

Binance reportedly wants to become a highly regulated company. In the announcement about the new restrictions in Australia, the company reaffirms that the changes underway are “in line with our commitment to compliance and our plans to become a regulated financial institution”.

The ultimate goal, CEO Changpeng Zhao recently said, would be to get Binance’s listing approved on the US stock exchanges.

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