Many Binance customers faced loss as the exchange suspended derivative trading without any prior announcement in Australia.
Binance is a top-ranked crypto exchange by crypto trade volume on this platform. This exchange was founded by Changpeng Zhao (CZ) in 2017 and now this exchange has more than 138 million registered users. Initially this exchange was a Chinese company but later shifted its headquarters out of China, just a few years before the China blanket ban on cryptocurrencies.
On 23 Feb 2023, Binance Australia suspended derivative trading and also closed the trade position of the traders forcely citing some unclear reasons.
Many Binance Australia customers reported that they lost significant amounts of funds because of this Instant decision. A few crypto Twitter users suggested people keep calm until the Binance exchange will give a final update on this new decision.
Binance CEO Changpeng Zhao (CZ) responded and confirmed that all the customers who faced loss because of this sudden closure of the derivatives trading will be compensated by the exchange and also the exchange will review the whole situation and figure out whether it will again reopen Futures Trading in Australia or not.
At present time, Binance is also facing regulatory pressure in the United States. Because of the enforcement action & secret hidden pressure on the US local companies, Binance is losing its US partners. To this date, Binance has no US banking partner as all the US banks are facing regulatory heat over their relationship with crypto companies.
Also because of the United States Securities and Exchange Commission (SEC) agency, BUSD issuer company Paxos terminated its partnership with the Binance exchange.