One of Australia’s Largest Crypto exchanges Binance has today announced they are closing futures, options and leveraged trading – Effective from 2021-09-24 09:00 AM (UTC). Meaning Aussie users will have until Friday before they can no longer enter new positions using the popular futures trading exchange.
Binance Australia users “will have 90 days to reduce and close their positions for these products. Users will be able to top-up margin balances to prevent margin calls and liquidations, but will not be able to increase or open new positions.”
“Users will no longer be able to manually reduce or close their positions after 2021-12-23 11:59 PM (UTC). Thereafter all remaining open positions will be closed.”
Binance has been the target of a string of warnings and denouncements from financial regulators from all over the world over in recent months, including those of the U.K., Japan, Italy and Thailand. Binance is currently facing regulatory scrutiny in more than half a dozen countries that threaten its global dominance. The severity of regulatory warnings from different countries is different, however, all countries involved have indicated that Binance is not regulated to offer their services in these countries.
The series of regulatory hurdles faced by Binance over the past couple of months comes at a crucial time when the majority of its competitors are working with regulators to expand its services in full compliance. Coinbase and FTX the two competitors have made significant headway in terms of regulatory compliance and adoption.
Binance has been at the receiving end of regulatory warnings for quite some time now. However, the exchange had always played it down as routine warnings while continuing its services in those nations. The current scenario though is quite different as the crypto exchange has never faced so many regulatory warnings all at once.
The lack of physical headquarters for the crypto exchange has been the biggest issue with regulators. The exchange suggests the decentralized nature of its operations is the key reason behind the lack of headquarters. However, this poses a great issue for investors if they have to file a complaint against the platform.
The announcement has no direct impact on the services provided on Binance Australia
After speaking with the new Binance Australia CEO Leigh Travers today he provided the following statement on this announcment:
“I am aware of the recent announcement from Binance.com regarding its service changes for Australian users. The announcement has no direct impact on the services provided on Binance Australia. Our relationship with our users has not changed. Binance Australia is a digital currency exchange platform that enables Australian customers to easily buy and trade cryptocurrencies with the Australian Dollar (AUD). Binance Australia only offers spot conversion of fiat to digital currency and vice versa.”
So where can you trade Futures now?
The front runner for replacing Binance futures trading for Aussies at this point seems to be FTX – offering innovative products including industry-first derivatives, options, volatility products and leveraged tokens.
At the time of writing this post the 24 hour volume on FTX is over 26 billion dollars or 630,000 BTC (Coinmarketcap). The exchange is currently accessible to Australians for futures trading with a max leverage of 20x. Which in my personal opinion is perfect for not only seasoned traders but especially for beginner traders. FTX also offers over 250 futures perpetual and quarterly markets and over 100 spot markets. Join FTX HERE.
If you want to learn how to trade futures our next course starts on NOV 15th. You can join HERE. We teach how to trade using FTX.