Binance has been a regular visitor of the headlines. The increased pressure from regulators from across the globe has left the exchange gasping for a breath of fresh air. Seems like the regulatory pressure was getting to the platform as it was shutting down services in various parts of the globe. Hong Kong became the latest region to behold Binance’s fallout with financial watchdogs.
The Changpeng Zhao-led crypto exchange managed to stay on top despite being fairly new to the market. The constant updates, partnerships, expansion, and CZ’s marketing skills put the exchange on a pedestal. This hot streak of the exchange was interrupted by regulators of different regions across the globe.
Not too long ago, the Securities and Futures Commission on Hong Kong noted how the platform wasn’t licensed to carry out crypto-related activities in the region. Binance has been facing similar issues with regulators from Japan, Ontario as well as the Cayman Islands.
Binance imposes crypto derivatives restrictions on Hong Kong users
In a recent tweet, CEO Changpeng Zhao revealed how new crypto exchange users would be prohibited from accessing the futures accounts. The tweet read,
Further information was provided by the exchange on its blog post. In the post, the exchange noted that users from Hong Kong would no longer be allowed to open up new derivatives accounts. While the date was yet to be announced, users would be allowed a grace period of about 90 days to close their open positions.
The crypto exchange further wrote,
“As the market leader, Binance constantly evaluates its product and service offerings. 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. Binance will be the first major cryptocurrency and digital assets exchange to proactively restrict access to derivatives products to Hong Kong users.”