Binance Australia, the Australian subsidiary of the world’s largest crypto exchange has reportedly discontinued all its derivative product offerings. The news was reported by popular crypto platform Wu Blockchain who said some of the investors have informed them about the possible halting of crypto futures and margin products for new customers.
Binance has faced regulatory actions against its crypto futures and margins trading services due to its high leverage offering. Earlier, the US CFTC was also investigating Binance.US whether they offered leverage trading services to customers against the measures put out by regulators.
Some investors told WuBlockchain that binance Australia no longer provides Future functions to new local residents. pic.twitter.com/Z2OJr57l0G
— Wu Blockchain (@WuBlockchain) July 19, 2021
Binance is currently facing regulatory scrutiny in more than half a dozen countries that threaten its global dominance. The severity of regulatory warnings from different countries is different, however, all eight countries have indicated that Binance is not regulated to offer their services in these countries.
Binance had recently discontinued its tokenized stocks services just three months after launching it, owing to regulatory issues raised by the German regulators BaFin.
Binance’s Global Dominance Under Threat
The series of regulatory hurdles faced by Binance over the past couple of months comes at a crucial time when the majority of its competitors are working with regulators to expand its services in full compliance. Coinbase and FTX the two competitors have made significant headway in terms of regulatory compliance and adoption.
Binance has been at the receiving end of regulatory warnings for quite some time now. However, the exchange had always played it down as routine warnings while continuing its services in those nations. The current scenario though is quite different as the crypto exchange has never faced so many regulatory warnings all at once.
The lack of physical headquarters for the crypto exchange has been the biggest issue with regulators. The exchange suggests the decentralized nature of its operations is the key reason behind the lack of headquarters. However, this poses a great issue for investors if they have to file a complaint against the platform.