Binance relaunches crypto derivatives for Australian customers

abdelaziz Fathi

Binance will resume offering its futures, options, and leveraged tokens products to Australian crypto traders, the exchange said on Friday.

Binance

The local arm of the world’s largest crypto ecosystem, Binance Australia Derivatives, has launched over-the-counter (OTC) derivative products for wholesale customers under its Australian Financial Services Licence.

CFDs are often a more convenient way of trading cryptocurrencies, as it allows traders to speculate on price movements and hedge exposures without having to own or store the real underlying coins in a digital wallet.

Leigh Travers, Director of Binance Australia Derivatives said, “Launching crypto derivatives under an AFSL delivers on our core strategy of becoming a regulated institution in Australia. The Binance Australia Derivatives products will enable wholesale customers the opportunity to hedge their crypto portfolio as well as grow the total size of Australian crypto markets.”

Changpeng Zhao, Chief Executive Officer of Binance added, “To attract the next billion crypto users, Binance is focused on building user trust through regulatory compliance, security, and strategic partnerships. The Australian crypto market is a unique opportunity due to the robustness of the financial services regime”

The move comes nearly 10 months after Binance suspended derivatives trading activities in Australia amid increased regulatory pressure. The crypto exchange, the biggest in the world by volume, also stopped offering crypto derivatives products in Brazil and Hong Kong, to get ahead on compliance as it has drawn scrutiny from regulators worldwide.

For CFDs brokers, the biggest blow has been ASIC’s decision to limit how much leverage they can offer to their clients to juice up bets. Regulated firms have been forced to limit the leverage they offer to a maximum of 30:1.

Additionally, the rules mandate negative account protection, ensuring that customers cannot lose more than their trading stake, avoiding a repeat of the debacle following the 2015 Swiss Franc collapse. Finally, the rules forbid bonuses and other incentives, whether monetary or non-monetary, that may have encouraged overtrading in recent years.

The new rules were introduced in 2020 and effectively harmonize ASIC’s requirements with product approval requirements introduced in Europe by ESMA, which also banned offering binary options and restricted leverage on CFDs.

Read this next

Retail FX

Ironbeam becomes CME clearing member and launches MT5

“The direct clearing aspect along with our low-latency proprietary trading tools and technology solutions make Ironbeam the ideal trading destination.”

Institutional FX

Top 0.07%: oneZero makes it to Inc. 5000 of fastest growing companies in America

oneZero started out by serving the foreign exchange trading community, developing and executing technology that could scale with the growth of the FX market.

Industry News

CFTC wins case against broker for secretly taking other side of client orders in block trades

“As we said at the outset of this case, the illegal use of inside or confidential information undermines confidence in markets and will not be tolerated.”

Technology

BankiFi raises $4.8m to bring embedded banking platform to North America

“Our mission is to make all aspects of cash management and payments easier for SMBs everywhere, and this investment is another huge step to making that a reality.”

Executive Moves

Shieldpay hires ex-Payoneer Chris Andrews as Head of Sales

“We’ll be expanding our position in existing markets and accelerating growth into new verticals, whilst building on our direct and indirect channels.”

Digital Assets

Crypto.com secures preliminary approval to operate in Canada

Crypto.com, one of the longest-established crypto platforms, has become the first digital asset platform to sign a Pre-‘Registration Undertaking’ with the Ontario Securities Commission (OSC) in Canada.

Retail FX

CySEC hits IC Markets One with regulatory warning

The Cyprus Securities and Exchange Commission has once again stepped up its fight against unauthorized brokers.

Uncategorized

XTAGE now offers bitcoin and ether trading to 3.6M Brazilian investors

Brazilian financial services giant XP has officially launched its crypto trading platform XTAGE, which was built on major American stock exchange Nasdaq’s trading technology.

Institutional FX

FX volume drops 7pct at CLS Group in July 2022

FX settlement specialist CLS Group today reported that the executed volumes of currency trading on its platforms were notably down in July.

<