The world’s leading cryptocurrency exchange, Binance, took to Twitter to announce that it has forcibly closed positions from Australian accounts that have been misclassified as “Wholesale Investors.”
- Binance revealed that Australian regulation requires them to forcibly close positions of mistakenly classified accounts of Australian investors.
Our team identified a small number of Australian users who were incorrectly classified as “wholesale investors” on Binance.
Under Australian regulation, we were required to notify these users and close any of their own derivative positions with immediate effect.
- The exchange also said that they have already contacted affected users and intend to compensate them for any losses they may have incurred while trading derivatives on Binance.
- With that being said, the news caused market volatility, as the price of Bitcoin dipped below $24K and then rallied minutes later:
- Coinglass data too shows an uptick in liquidations, with the last four hours seeing over $20 million in liquidated BTC positions, most of them long.
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