As the dramatic rise of the crypto industry continue. The financial regulators are still concerned about the protection of customers. Financial regulators fear that criminal activities, cybercrimes and illegal use of money can really create the monumental challenges. However, the financial year 2021 has been hot in terms of crypto expansion and regulatory sanctions. Financial and legal watchdogs and other state institutions in countries like U.S, China, England, and many other regions of the world has imposed the strict regulations on the crypto industry. However, there have been multiple legal battles between the crypto outlets and regulatory bodies which are still going in the courts.
Binance in particular most frequently faced the regulatory issues. Many of the Binance products pushed the regulatory bodies to take strict action against Binance. One of the biggest reason is that many crypto exchnages can be used for purpose of money laundering. That’s why the regulatory authorities kept pushing these exchnages and limit their area of operations.
Binance has faced regulatory actions all across the globe. Dutch Central Bank have accused that exchange Binance failed to compliance with financial laws against terrorism. Given the fact that Binance is on regulator’s hitlist, Australian government also banned them offering their crypto futures and options in their market. So, now customers will not have access to these services at all. The government has also warned Australian citizens to avoid investing in such sort of services. Moreover, government has given its citizens 90 days’ time period to close their positions.
From the Friday, 24th September, customers will not be able to invest in these services. But they can increase their margin balances against liquidation & margin calls. But from December 24th, 20201 the company will totally shut down its derivative operations.
Binance responded to all these news by saying that company officials are closely working with legal experts and company will make sure that its compliance and acceptance for all their products. The company also said that its will ensure that our customers are safe and protected. Company usually monitors the legal requirements of all the regions where they operate.
But, as of this writing, it seems that there is no stopping to these regulatory limitations being faced by Binance at the moment. Australia is not the only country which has banned Binance. Previously countries like Brazil and Hong Kong also banned company’s derivatives operations. Moreover, the countries like Britain, Netherlands, Italy, and Germany also shut down Binance’s derivative operations. Some other European countries also stopped company’s derivative operations. Binance is the largest crypto exchange. Company’s operations are so diverse that it is difficult to fulfill all sort of legal aspects. However, company’s legal team is carefully dealing with these issues.