Binance’s regulatory issues have one thing in common: they never seem to end. In what is another compliance effort, the exchange has extended restrictions on derivatives trading to users in Australia.
In a recent announcement, the company informed its Australian users that, effective immediately, new users from the country will not be able to open new accounts for Options, margin products and leveraged tokens.
The statement also stated that it is an “expansion of restrictions.” Last month, Binance had banned users in Australia from opening new futures accounts.
Reiterating Binance’s efforts to work on regional compliance, the announcement added:
“Binance will be one of the first major cryptocurrency and digital asset exchanges to proactively restrict access to derivative products to Australian users, in line with our commitment to compliance and our plans to become a regulated financial institution.”
Binance is stepping up its compliance efforts since the exchange came under “coordinated” regulatory fire from around the world. The latest addition to this list was the Netherlands after its central bank issued a warning for operating in the country illegally.
Other countries like the UK., Hong Kong, India, and Canada have also made similar accusations. In fact, these agencies claimed that the company had been offering securities, investments and financial instruments without proper registration or authorization.
It is also reported to have been investigated by the United States Department of Justice (DoJ) and the Internal Revenue Service (IRS). The accusation? Possible crimes of tax evasion and money laundering.
The company last month ceased crypto-margin trading in the Australian dollar, along with the British pound and the euro. On top of that, it had disabled new Hong Kong futures trading accounts and also applied a 20x leverage limit for new and existing users. The company also had to discontinue its ambitious stock tokens that it had launched just three months ago.
Since these regulatory setbacks, Binance’s CEO was quick to highlight the exchange’s efforts toward “proactive compliance.”
.@binance Moving from reactive compliance to proactive compliance. Stay tuned.
– CZ 🔶 Binance (@cz_binance) August 6, 2021
Binance also has Greg Monahan, former Internal Revenue Service (IRS) official Greg Monahan, pinned as its Global Money Laundering Reporting Officer in an attempt to make the “industry at large a place. safer”.
However, regulatory agencies are not. In fact, according to a recent lawsuit filed by some merchants, Binance Futures products and leveraged tokens stopped working as expected on May 19.
This is a machine translation of our English version.
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