Australian regulators have launched an investigation into cryptocurrency exchange Binance’s classification of wholesale and retail investors. This comes just two days after Binance shut down all of its derivatives trading in the country. The authorities have taken action against the exchange as they continue to monitor its operations globally; Binance has come under scrutiny from regulators in multiple countries in recent months. The investigations highlight the need for investors to be cautious when trading on centralized exchanges, as they do not have control over their keys or coins.
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The Dangers of Centralized Exchanges
Introduction:
Everyone knows binance is in hot water across the globe and this time Australian Regulators were the one hot on their Trails
Closure of Binance:
So they decided to just close it all every Australian investor every customer to cover their own asses as we can see from the FX Street article their derivative closing spree happened February 23rd just two days after this.
Australian Securities and Investment Commission:
It was announced that the Australian Securities and Investment Commission was investigating binance over their classification of retail clients and wholesale clients.
U.S Regulators:
Remember folks, it’s not just Aussie regulators; U.S regulators are hot on their Trail too.
Conclusion:
Do not trade on centralized exchanges my friends, it’s not your keys it’s not your coins not your positions. The dangers of centralized exchanges have been highlighted yet again. It’s important to remain cautious and informed when investing.
