Binance Bars Australians From Crypto Derivatives Trading

World's top cryptocurrency exchange Binance retired its cryptocurrency derivatives from the Australian market.

What Happened: According to a Tuesday announcement, Australia-based Binance users have 90 days to close their positions for futures, options and leveraged tokens. After Friday, Australian users also won't be able to increase their existing positions on those products or open new ones, but they will still be able to top-up their margin balances to prevent liquidations and margin calls.

As of Dec. 23, Australian Binance users will see all of their positions involving the aforementioned cryptocurrency derivatives be automatically closed. The firm explains that the measure aims "to ensure our product offerings are welcomed by users and local regulators" and that the exchange is following "local regulatory requirements across different markets."

The announcement follows mid-March reports that Binance is under investigation by the U.S. Commodity Futures Trading Commission over its derivatives products. At the end of June, the exchange also withdrew its derivatives from Germany, Italy and The Netherlands due to increasing scrutiny by numerous regulators worldwide. 

A further limitation imposed on its users by Binance — and competing exchange FTX — aimed at appeasing regulators was limiting maximum leverage on the platform to 20x to limit liquidation risk back in late July.

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