Crypto Twitter community members in the UK and Australia are claiming that Binance has restricted its users from both countries from subscribing to the platform’s Earn products. The new measures allegedly took effect on February 22nd, at 22:30 UTC + 8 and will affect Binance’s Simple Earn, DeFi staking, ETH 2.0 staking, BNB Vault and Liquidity farming.
Binance community member James W. was also affected by the new restrictions by Binance and shared the following screenshot of a message from the crypto exchange.
The claims of Binance ending Earn products for the UK and Australia follow additional claims on Twitter that it has forcefully closed derivatives trading positions for its traders residing in Australia. Crypto-community member shared a screenshot of the message they received from Binance explaining that their derivatives trading account has been restricted until they ‘provide new information or evidence of how [they] meet the requirements to be classified as a wholesale trader.
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The message from Binance also stated that the exchange is ‘working on a remediation and compensation plan’ for users affected by the sudden closure of their trading positions and derivatives trading accounts. However, the team at Binance has announced that they will not issue any further Binance USD or BUSD tokens, as per the SEC’s deadline of Feb, 25, 2023. We Were Required to Close their Derivative Positions With Immediate Effect – Binance.
Binance has since tweeted an update on why it closed its Australian users’ derivatives trading positions and accounts. The Binance team explained that they had been ordered to do so with immediate effect and were in the process of contacting all affected users.
Our team identified a small number of Australian users who were incorrectly classed as ‘Wholesale Investors’ on Binance.
As per Australian regulation, we were required to inform these users and close any of their own derivative positions with immediate effect.
— Binance (@binance) February 23, 2023
‘Our team identified a small number of Australian users who were incorrectly classed as ‘Wholesale Investors’ on Binance. As per Australian regulation, we were required to inform these users and close any of their own derivative positions with immediate effect,’ the Binance team explained.
‘We have already contacted all impacted users and will fully compensate them for their losses incurred while trading derivatives on Binance,’ the team added.
At the time of writing, there are no exact details on how Binance will compensate the affected users in Australia. However, I asked the Binance bot about the current situation with users from the UK and Australia here’s the response in the screenshot below.
