Hong Kong users won’t be able use derivative products on Binance. Recently Binance banned users from Germany, Italy, and the Netherlands from using its derivate products.
Read: Binance Stops Crypto Futures Trading Services Across European Countries
Binance ban on Hong Kong users is to protect new users, but it seems that the ban is more in line with Chinese crack down on crypto business.
Binance Writes:
“We believe it’s an important step for building local relationships and establishing our industry for the long term.
The ongoing development of our industry’s regulatory framework poses an opportunity for greater collaboration between the industry and regulators.
Binance is committed to working constructively in policy-making that seeks to benefit every user.”
With immediate effect, users from Hong Kong cannot open new futures accounts on Binance.
As a market leader, #Binance is the first major crypto exchange to proactively take this action.
— Binance (@binance) August 6, 2021
Binance CEO said:
“Binance pivoting from reactive compliance to proactive compliance.Â
New Binance users from Hong Kong can no longer open futures accounts and we will wind-down access for existing users.
This is one of many proactive measures Binance is taking to help establish crypto compliance best practices worldwide.”
Binance CEO Aims To Make Binance Regulated Worldwide. Changpeng Zhao, Binance CEO and Founder, stated that Binance will work with local regulators in order to establish Binance regional headquarters.
In response to regulatory pressure, Binance has made several changes in recent weeks. After being warned by the Hong Kong Securities and Futures Commission, Binance pulled tokenized stock trading from its platform in July. Binance also announced that it has stopped futures and derivatives trading across Europe.
The exchange also reduced the daily withdrawal limit for non verified accounts also reducing Leverage Trading Limits.Â
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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