Out of regulatory concerns, Binance Australia will close crypto futures trading

As the crypto industry continues to dominate, financial regulators worry that criminals will turn to the industry due to illegal activities. 2021 is a hot spot for the encryption industry in terms of regulation. Many financial regulators in the United States and other countries have increased their supervision of the industry.

Some top exchanges, including Binance, have seen tremendous pressure from multiple institutions, especially on many of their products.

The reason is that, given the anonymity of transactions, many of these exchanges can be used as a means of money laundering. Therefore, some countries continue to restrict the operation of cryptocurrency exchanges in their markets.

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Binance has seen tremendous pressure from regulators around the world. Some countries and top financial institutions such as the Dutch Central Bank have accused the exchanges of not complying with anti-terrorism financial laws.

Australia bans crypto futures trading

In the face of pressure on the largest cryptocurrency exchange, the Australian government has prohibit They offer their crypto futures and options on their market. So now, traders will no longer access such products from Binance.

The government even warned all citizens and residents who invested in futures, options, and leveraged tokens to close their positions within 90 days. Binance announced this directive on September 20, 2021.

According to existing information, starting Friday, September 24, all Australian users will not invest in these products. But they can increase the margin balance for clearing and margin calls.But from December 24, In 2021, various derivatives transactions will be closed.

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In response to this restriction, Binance representatives stated that their goal is to ensure compliance and acceptance of all products.

Therefore, they usually monitor the regulatory requirements of the places where they operate. But with the recent development, the company will try to protect the interests of users.

Growing restrictions on Binance

In addition to Australia’s recent restrictions, other countries have been restricting Binance’s operations in their markets. In addition, many regulatory agencies around the world have also issued warnings to exchanges.

For example, last month, the exchange stopped providing derivatives trading services in Brazil. Prior to this, the Hong Kong government also suspended operations.

Binance also stopped trading of crypto derivatives in many other countries, including the Netherlands, Germany, and Italy. According to the exchange, it has decided to stop these services in European countries.

crypto market is recovering from an abrupt decline | Source: Crypto Total Market Cap on TradingView.com
Featured Image From Binance, Chart From Tradingview.com

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