• Binance, the world’s largest cryptocurrency exchange, is undergoing a review of its local crypto derivatives operations by Australia’s Securities and Investments Commission (ASIC).
• The ASIC has prohibited general public from participating in derivatives trading. This prompted Binance to require clients to prove they are institutional investors before trading futures.
• Recent activities by Binance have caught the attention of Australian authorities who have now initiated an extensive investigation into the exchanges’ KYC and client onboarding procedures.
The world’s biggest cryptocurrency exchange, Binance, will be subject to a review of its local crypto derivatives operations as per Australia’s Securities and Investments Commission (ASIC). The ASIC prohibits the general public from participating in derivatives trading. Consequently, Binance requires its clients to prove that they are institutional investors before they may trade futures.
Recent activities by Binance have caught the attention of Australian authorities who are now conducting an extensive investigation into the exchange’s Know Your Customer (KYC) and client onboarding procedures. Changpeng Zhao, CEO of Binance has not yet notified ASIC of these issues despite being required to do so under the terms of its Australian financial services license.
On Thursday, it was announced that liquidation had taken place on accounts belonging to traders labelled incorrectly as “wholesale investors.” It was also announced that compensation for those consumers negatively impacted would be offered by Binance at a later date.
One year after the FTX exchange collapse, authorities are keeping a closer eye on the cryptocurrency market which has propelled Binance into limelight with worldwide activities and it’s platform in U.S being investigated by many regulatory organizations.
Binance has also announced plans for hiring new staff for operations in Romania further increasing their global presence within this emerging industry.