Binance Halts Derivatives Offerings To Users In Hong Kong Also

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Binance, a crypto exchange giant, has imposed restrictions on the opening of derivatives product accounts in Hong Kong. It also provides users from the Chinese special administration region with a grace period for 90 days to close any open positions.

“We will be restricting Hong Kong users in respect of derivatives products (including all futures, options, margin products and leveraged tokens) in-line with our commitment to compliance,” the exchange said.

Our goal is to create a sustainable ecosystem around digital assets and blockchain technology. We hope such efforts will lead to the industry’s long-term growth in the local market.

The grace period will prevent users from opening new derivatives positions. Binance claims it will be the first major cryptocurrency and digital asset exchange to prevent users from accessing such products based in Hong Kong.

The exchange’s CEO, Changpeng Zhao, said that the decision is “one of many proactive measures Binance is taking to help establish crypto compliance best practices worldwide.”

Last month, Binance published a notice on its website in which it announced its move to “wind down its futures and derivatives products offerings in Germany, Italy, and the Netherlands.”

Similar to the latest action directed at Hong Kong users by Binance, Binance’s European customers were prohibited from opening new futures and derivatives accounts. They were also given 90 days to close any open positions starting at a later date.

On July 30, the Malaysian financial regulator Securities Commission Malaysia said it was taking “enforcement action” against the exchange because it had “illegally operated a digital asset trading platform (DAX). Binance is accused by the regulator of operating a DAX in violation of Malaysia’s Capital Markets and Services Act 2007.

Furthermore, Binance announced today that it is updating its application programming interface (API) services to limit new API key creation by accounts that have only completed basic account verification – the reason being “to ensure a safe and fair trading environment for all users and remain compliant with the latest industry requirements.”

Accounts that have not passed intermediate verification will lose any API keys they may have. They will be removed from their accounts after August 23.

Inca Digital, a crypto intelligence company based in the US, has revealed that crypto derivatives traders from the US, and other countries, are able access restricted platforms despite local securities regulations.

At 11:43 UTC, the currently fourth coin by market capitalization, binance coin (BNB), is trading at USD 334. It is up almost 2% per day and 5% per week.

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