Users of the Binance Australia Derivatives product reported receiving unexpected notices on February 23 from the digital assets platform, saying that the company had begun to close some derivatives accounts and contracts.

People who did not meet the requirements to be a “wholesale investor” were told that all their positions would be closed and they would no longer be allowed to use the Binance Australia Derivatives Platform, according to screenshots a user uploaded to Twitter. . variety of users.

Users have been advised that in order to continue using the Binance Australia derivatives platform, they must provide the necessary proof to demonstrate that they meet the criteria for the role of “wholesale investor”.

The letter went on to explain that Binance Australia Derivatives is working on a remediation and compensation plan for clients who are owed any refunds by the company as a result of the change.

The steps that were followed were then said to be in accordance with local law in Australia, and as a result, users were quickly informed and the accounts that were affected were closed.

The company officially goes by the name of Oztures Trade Pty Ltd, however its trading name is Binance Australia Derivatives. Binance’s local Australia office is an approved corporate agent for Oztures. This is the connection between the two companies.

It is made very clear that derivative items are only available to wholesale customers located in Australia in the official roundup that was issued in July 2022.

Despite this, customers commented on the Binance article on Twitter, with one user from Australia stating that they were unable to stake their cryptocurrency due to complications in their location. Another user said that flexible earning was no longer accessible in Australia, prompting Binance support staff to react by saying they would look into the situation.

As part of its “multi-stage” strategy to combat fraud, Australia strengthened its cryptocurrency watchdogs in early February.