Binance CEO clarifies suspension of derivatives in Australia

Binance CEO Changpeng Zhao (CZ) had to release a statement to clarify the reason that led Australia’s CVM to warn that the exchange had suspended derivatives offerings in the country.

Under pressure from the US, with a lawsuit filed by the CFTC, the exchange has been keeping a close eye on regulators. In Brazil, Binance is also facing a new administrative sanctions process by the CVM, which is still under analysis.

But in Australia, the platform had a close talk with regulators and was even allowed to list its products. With the news that the brokerage had suspended listings, some of the market worried about an increase in pressure.

Binance Australia issued an apology to affected users

In an open letter to the Australian cryptocurrency market, Binance released a statement regarding the suspension of derivatives offerings in the country.

The broker apologized to affected users and said that by ending its derivatives offering it will be able to focus on the spot market.

“We have reached out to affected users to notify them of the shutdown process. We apologize for any inconvenience this may cause and we will be closely monitoring the process to ensure it is as seamless as possible. Binance Australia’s more focused approach will be further developed on the locally registered spot exchange (operated by Binance Australia). Local users can continue to access and enjoy the Binance Australia spot trading platform.”

In a statement from ASIC, Australia’s CVM, it became clear that Binance’s services to the derivatives market will permanently cease on April 21, 2023.

Binance Australia itself has asked the country’s CVM to remove derivatives, says CZ

Citing the CVM of Australia’s own note, Binance’s CEO recalled that the derivatives offering ended last Wednesday at the request of the broker (5). According to CZ, many people falsely reported that the brokerage was in trouble, when in fact there is no problem.

“There is some misinformation (and confusion) about Binance Australia. Binance filed for the revocation of its derivatives license yesterday. The platform had exactly 104 users until yesterday. Binance WILL CONTINUE to serve the spot market in the AU.”

The derivatives offering concerns the futures market and is linked to cryptocurrency products, which Binance offers in some of the countries where it operates. However, according to CZ, only 104 users traded the broker’s products, which did not justify holding the offers.

In any case, while the climate in Australia remains mild for the stock market, regulators in Brazil and the US continue to investigate complaints against Binance.

Source: Live Coins

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