Bitcoin Volatility Increases as Binance Closes Some Aussie Derivatives Accounts

The world’s leading cryptocurrency exchange – Binance – took to Twitter to announce that it has forcibly closed positions of Australian accounts that have been mistakenly classified 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 classed as “Wholesale Investors” on Binance.

As per Australian regulation, we were required to inform these users and close any of their own derivative positions with immediate effect.

• The exchange also said that they’ve already contacted the impacted users and intend to fully compensate them for any losses they may have incurred while trading derivatives on Binance.
• That said, the news did cause volatility in the market, as Bitcoin’s price tumbled below $24K and then recovered minutes later:

• Data from Coinglass also shows an uptick in liquidations, with the last four hours seeing over $20 million worth of liquidated BTC positions, most of them being long.

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