Binance, the world's leading cryptocurrency exchange, has announced on Twitter that it has forcibly closed the positions of Australian accounts misclassified as "wholesale investors."
Binance revealed that Australian regulations required them to forcibly close positions in misclassified accounts of Australian investors. Our team discovered that a small percentage of Australian users were misclassified as “wholesale investors” on Binance.
Under Australian regulations, we are required to notify these users and immediately close any derivatives positions of their own. The exchange also stated that they have contacted affected users and intend to fully compensate them for any losses they may have suffered while trading derivatives on Binance. That said, the news did cause market volatility, as Bitcoin’s price dropped below $24,000 before recovering minutes later.
Data from Coinglass also showed an increase in liquidations, with more than $20 million worth of BTC liquidated positions over the past four hours, the majority of which were longs.
