Binance said on Twitter that it had incorrectly classed 500 Australian users as "wholesale investors," resulting in their derivative positions being unceremoniously closed.
"We have already contacted all impacted users and will fully compensate them for their losses incurred while trading derivatives on Binance," Binance added.
Our team identified a small number of Australian users who were incorrectly classed as ‘Wholesale Investors’ on Binance.
— Binance (@binance) February 23, 2023
As per Australian regulation, we were required to inform these users and close any of their own derivative positions with immediate effect.
According to the local regulations, Binance Australia has a past record of restricting retail traders from trading futures and financial derivatives products on their platform. These products are only accessible to "wholesale" traders on Binance Australia.
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