- Binance shuts down the Binance Australia Derivatives of unqualified users.
- Stunned users are promised compensation for losses from being cut off from the category in which they were incorrectly placed.
- Affected users are asked to submit the necessary information to onboard them as “Wholesale Investors properly.”
Binance Australia Derivatives, unfortunately, closed the accounts of some of its users, requesting them to provide the needed requirements before gaining access to the platform.
On February 23, several users took to Twitter to complain about being locked out of their Binance Australia Derivatives accounts. They all claimed to have received a notification stating they did not meet the conditions to be a “Wholesale Investor,” as retail investors were not permitted to trade on the platform.
The users shared screenshot images of the message received by Binance, expressing their confusion over their closed accounts.
In the image posted on Twitter by an affected user of Binance Australia Derivatives, Binance announced that the decision to close the accounts of unqualified users on its platform began in January 2023, when the platform launched an investigation into its onboarding procedure. The results from the study showed that some users were mistakenly classified as Wholesale Investors.
“Unfortunately, our review indicates that you have not met the requirements to be classified as a ‘Wholesale Investor,’ and so we have removed your classification as a Wholesale Investor from our records,” the message read.
Following this result, all open accounts of the unqualified users were closed, and the Binance Australia Derivatives trading platform services, once accessible to them, were revoked.
Although their access to the Binance Australia Derivatives was revoked, affected users were allowed to register and become wholesale investors in the trading platform. The notice required the users to provide the necessary information to pass the qualifications standards before being onboarded into the trading platform.
Binance compensates affected users
Binance announced on Twitter that it would compensate them for losses incurred while trading on the platform.
“500 users were affected by this remediation, which was an essential action to ensure we adhere to the local rules,” Binance said.
Binance affirmed that it contacted the affected customers and discussed their compensation plans.
What is Binance Australia Derivatives?
Catering only to Australian residents, Binance Australia Derivatives is a trading name of Oztures Trading Pty Ltd., which provides Derivatives products to its users.
It provides wholesale clients with a substitute product to enter the market and also delivers strong liquidity and little slippage for straightforward performance.
Unqualified users of the Binance Australia Derivatives were shocked to see their accounts on the trading platform closed but have since been contacted by Binance, explaining to them its reason for the abrupt closure of their Derivatives trading platform.