Binance has forcibly closed derivatives positions of some Australian accounts that have been mistakenly classified.
The world’s leading cryptocurrency exchange – Binance – took to Twitter to announce that it has forcibly closed positions of Australian accounts that have been mistakenly classified as “Wholesale Investors.”
Binance revealed that Australian regulation requires them to forcibly close positions of mistakenly classified accounts of Australian investors.
Our team identified a small number of Australian Users who were incorrectly classed as “Wholesale Investors” on Binance.
As per Australian regulation, we were required to inform these users and close any of their own derivative positions with immediate effect.
The exchange also said that they’ve already contacted the impacted users and intend to fully compensate them for any losses they may have incurred while trading derivatives on Binance.
That said, the news did cause volatility in the market, as Bitcoin’s price tumbled below $24K and then recovered minutes later:
Source: Binance
Data from Coinglass also shows an uptick in liquidations, with the last four hours seeing over $20 million worth of liquidated BTC positions, most of them being long.
Georgi Georgiev is CryptoPotato's editor-in-chief and seasoned writer with over four years of experience writing about blockchain and cryptocurrencies. Georgi's passion for Bitcoin and cryptocurrencies bloomed in late 2016 and he hasn't looked back since. Crypto’s technological and economic implications are what interest him most, and he has one eye turned to the market whenever he’s not sleeping. Contact George: LinkedIn
