Binance has been investigated by Australian regulator ASIC for several issues with its operations in Australia.
Popular crypto exchange Binance has been working hard with regulators lately. After FTX went bankrupt, Binance began to claim to be the largest exchange in the world. Binance CEO Changpeng Zhao (CZ) stated that they are the largest exchange in the world, so they will be vulnerable to attacks.
According to the news by Bloomberg, one new concern of Binance was the Australian regulator ASIC. ASIC has launched an in-depth review and research into Binance’s operations in the country.
Binance Is On The Australian Regulator’s Radar
Binance has been investigated by ASIC, the country’s regulator, for its operations in Australia.
Binance, which is called the largest crypto exchange in the world, is going through difficult processes due to several disruptions in Australia. At the top of the events is the notification Binance sent to a user in Australia. WuBlockchain claimed that Binance asked a user in Australia to close their derivative account.
After this claim, discussions began by the community that Binance’s derivatives exchange in Australia would be closed. Binance, which is expected to make the necessary explanations in order to clarify these situations, stated that there were a few mistakes and they were resolved.
Making a statement on the subject, Binance said yesterday;
Our team has identified a small number of Australian users who are mistakenly classified as “Wholesale Traders” on Binance. Under Australian regulation, we were required to notify these users and close any of their derivative positions with immediate effect.
Referring to these problems experienced by users in Australia, Binance also stated that it would cover the losses of the users. Investors in the country are mistakenly seen as “qualified” or “institutional” investors and their transactions are suddenly closed in order to resolve this.
Finally, Australia’s regulator ASIC has started a research to understand these problems and examine what is going on.
As Bloomberg reports, ASIC has moved to examine how Binance distinguishes between “retail customers” and “wholesale customers,” namely “retail investment customers and high-value investment customers.” ASIC is investigating Binance Australia’s derivatives transactions.
53203
