Binance shuts down Hong Kong customers' access to crypto derivatives trading

Binance shuts down Hong Kong customers' access to crypto derivatives trading

Bitcoin exchange Binance has cut off access to Hong Kong users to trade crypto derivatives, including futures, options, leveraged tokens and margin products. The decision was attributed to obligations to comply with local laws.

"With immediate effect, Hong Kong users will not be able to open new accounts for derivative products. From a date to be announced in a later notice, users will be given a 90-day grace period to close positions. During this period, no new positions can be opened," the notice said.

CEO Changpeng Zhao said that Binance would take a more proactive stance on regulatory compliance, eschewing a reactive approach to compliance in favour of a proactive one. He stressed that restrictions on Hong Kong residents are just one of many measures.

.@binance pivoting from reactive compliance to proactive compliance. Stay tuned.

Earlier, the bitcoin exchange announced plans to wind down the ability to trade crypto derivatives in Europe, starting with Germany, Italy and the Netherlands.

The company reduced the daily withdrawal limit for new users with basic account verification from 2 BTC to 0.06 BTC. Binance also reduced the leverage on the futures platform to 20x.

On 28 July, the company announced the launch of a new API that allows customers to track their crypto-asset transactions for tax compliance.

Over the past few months, several regulators have taken an interest in the bitcoin exchange. In June, the UK's Financial Services Authority banned Binance Markets Limited from any regulated activity in the country without prior written approval.

The Cayman Islands began an inspection of the exchange, Thailand and Hong Kong accused the company of operating without a license, and Japan issued another warning to the company.

Polish regulators called for caution when using Binance's services. Italy and Malta warned consumers about the company's unregulated activities.

Securities Commission of Malaysia announced enforcement action against Binance "for illegal management of the digital asset exchange (DAX)" and the Indian authorities are looking into the company's role in a case related to money laundering.

As a reminder, amid pressure from regulators, Zhao published a letter outlining the platform's plans to protect customers and ensure compliance.

Binance shuts down Hong Kong customers' access to crypto derivatives trading

Binance Coin is a good investment in 2021. However, BNB has a high possibility of surpassing its current ATH at about $339.94 this year. BNB is one of the active digital assets in the crypto world that continues to maintain its uptrend position.

Related Posts

Suspected masterminds of $62m cryptocurrency laundering scheme detained in Australia

Centre consortium launches USDC stablcoin on Hedera Hashgraph blockchain

Morgan Stanley chief says clients have little interest in bitcoin

Vatican criticises role of cryptocurrencies in illegal migration