Binance has limited its derivatives offering in yet another country, this time Australia. On Thursday, the cryptocurrency exchange announced that it will no longer accept new Australian clients for options, margin products, and leveraged tokens.
The latest move extends Binance’s previously imposed restriction on Australian users opening new futures accounts. It also discontinued crypto margin trading with the Australian dollar, as well as the pound sterling and euro.
The announcement stated that “Binance constantly evaluates its product and service offerings.” “In line with our commitment to compliance and our plans to become a regulated financial institution, Binance will be one of the first major cryptocurrency and digital asset exchanges to proactively restrict access to derivatives products to Australian users.”
Binance’s Dominance Is Under Threat
Binance previously discontinued derivatives trading in Hong Kong and three European countries: Germany, Italy, and the Netherlands. It also intends to limit the distribution of derivatives products throughout Europe.
While many regulators are targeting Binance for illegally offering crypto products without obtaining local financial services licenses, the Australian regulator did not directly warn the company.
The latest exit, however, came just a day after the Australian Securities and Investments Commission issued a general warning against all unlicensed cryptocurrency trading platforms that offer services to Australian traders.
According to the regulatory warning, “ASIC has received a number of reports from Australians who have used unlicensed platforms to trade crypto-asset related financial products, such as options and futures, and have experienced significant losses due to excessive leverage, platform outages, or unfair liquidations.”
Binance has aggressively expanded its offerings in both products and geographies over the last few years. However, Binance’s dominance is now under threat, as more than a dozen regulators have issued warnings or taken enforcement actions against the exchange.
“Our goal is to build a sustainable ecosystem around blockchain technology and digital assets, and we hope that such efforts will help the industry grow in the long run,” Binance added.