Binance Australia closes derivative trading accounts of some wholesale investors

Binance closed the derivative trading accounts of some wholesale investors in Australia after an investigation found that they didn't meet the criteria for such investors.

In Australia, Binance only offers crypto derivatives trading to wholesale investors. A spokesperson for Binance told The Block that the exchange giant discovered the discrepancy during a review of its onboarding process. These incorrectly labelled accounts have since had their positions closed. The owners of these accounts will also not be able to access the derivatives market on Binance anymore.

Binance stated that it had informed affected customers of the restrictions on their accounts. "Binance Australia Derivatives are working on a remediation and compensation plan," said the spokesperson.

Update: This article and headline has been updated to clarify that this affected some wholesale investors.