• Binance is the first major cryptocurrency exchange to proactively restrict access to derivatives products for Hong Kong users.
  • Users have 90 days grace period to close open positions on the derivatives exchange.
  • The exchange closed down its derivative products offerings in Germany, Italy, and the Netherlands in the past week.

The crypto exchange's move was in line with its commitment to compliance. Regulators shut doors for Binance in Japan, Malaysia, Italy, and the Cayman Islands, amidst rising concerns of its unauthorized operations.

Binance shut derivatives trading in Hong Kong in line with commitment to compliance

Binance officially announced that the exchange is restricting access to derivatives products to Hong Kong users. This move comes after the leading digital asset exchange pulled its derivatives trading in Europe (Germany, Italy, and the Netherlands) and ceased crypto margin trading on sterling, the Euro, and the Australian dollar. 

The latest announcement reads:

With immediate effect, users from Hong Kong will not be able to open new derivatives products accounts. Also, going into  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.

The exchange is yet to set a date when the restrictions will take full effect (when the grace period will begin). Changpeng Zhao (CZ), CEO of Binance, tweeted,

Over recent months regulators have voiced concerns for consumer protection and the standard of anti-money laundering (AML) checks at cryptocurrency exchanges and increased pressure on Binance. 

Binance is currently facing regulatory challenges and has received warnings from authorities in the UK, Thailand, Singapore, and the Cayman Islands. The exchange's proactive move is to comply with regulations and roll back high-risk services offered to traders.

CZ apologized to traders for short-term pain from the turn of events in a recent tweet

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Chainlink social dominance hits six-month peak as LINK extends gains

Chainlink social dominance hits six-month peak as LINK extends gains

Chainlink social dominance surged to a six-month peak on Friday as LINK holders increased their activity. LINK traders started taking profits, on-chain data trackers show. LINK price added 6% on Friday, extending its gains from mid-week.

More Chainlink News

Binance helps Taiwan crack a virtual asset money laundering case, BNB sustains above $570

Binance helps Taiwan crack a virtual asset money laundering case, BNB sustains above $570

Binance’s Financial Crimes Compliance (FCC) department joined forces with Taiwan’s Ministry of Justice and helped resolve a case of money laundering worth NT$200 million, or $6.2 million. 

More Binance News

Bitcoin Weekly Forecast: Is BTC out of the woods? Premium

Bitcoin Weekly Forecast: Is BTC out of the woods?

Bitcoin price shows signs of continuing its uptrend, providing a buying opportunity between $64,580 to $63,095. On-chain metrics forecast a bullish outlook for BTC ahead. If BTC clears $70,000, the chances of resuming the uptrend would skyrocket.

More Bitcoin News

XRP trades steady at $0.50 as Ripple shares plan to expand services in Africa

XRP trades steady at $0.50 as Ripple shares plan to expand services in Africa

Ripple hovers close to $0.51 on Friday, above the psychologically important $0.50 level, as traders await the court ruling of the lawsuit against the US Securities and Exchange Commission and amid new commitments from the firm to expand its services in Africa. 

More Ripple News

Bitcoin: Is BTC out of the woods? Premium

Bitcoin: Is BTC out of the woods?

Bitcoin (BTC) price action in the past two days has confirmed the resumption of the bull run. However, BTC needs to clear a few key hurdles before investors can go all-in. 

Read full analysis

BTC

ETH

XRP