Hassan Maishera
Binance halts opening of new derivative accounts in Hong Kong
Cryptocurrency exchange Binance has stopped the opening of new derivative accounts in Hong Kong, stating that it intends to abide by the regulations put in place in each country.
Binance restricts derivative offerings in Hong Kong
The world’s leading crypto exchange Binance announced earlier today that it would no longer allow traders in Hong Kong to open new derivative trading accounts. It is also closing the offering for the existing users as it looks to abide by the local regulation.
In a blog post earlier today, Binance said, “With immediate effect, users from Hong Kong will not be able to open new derivatives products accounts. Also, with effect from a date to be announced at a later notice, users from Hong Kong will have a 90 days grace period to close their open positions. During the grace period, no new positions may be opened.”
According to the crypto exchange, the move was necessary since it is committed to compliance in various countries. Furthermore, Binance said it would be the first major cryptocurrency and digital assets exchange to proactively restrict access to derivatives products to traders in Hong Kong.
“Our aim is to create a sustainable ecosystem around blockchain technology and digital assets, and we hope that such efforts will help the industry grow in the local market in the long run,” Binance added.
The cryptocurrency exchange has come under fire in various countries globally due to how it operates. In the United Kingdom, the Financial Conduct Authority (FCA) banned Binance Markets Limited from operating in the country due to a lack of license. This led some banks, including HSBC, Barclays and Santander, to block transactions to the cryptocurrency exchange.
The regulators in Malaysia and Italy also issued similar notices. In Malaysia, Binance was given a grace period to stop its operations in the country, with traders advised to withdraw their funds from the cryptocurrency exchange.
