Binance informed Hong Kong traders that derivatives products will be unavailable beginning immediately, according to a release.
Binance, the world’s largest crypto exchange by trade volumes, is the global leader in blockchain ecosystem. The whole fintech industry takes note when there is a development by Binance. The most recent move is one of a set of measures by the firm to limit product offerings.
Users in Hong Kong will no longer be able to open new derivatives products accounts. Additionally, Binance stated that a 90-day grace period will be implemented, through a subsequent announcement, for Hong Kong-based users to close any remaining open positions. No new positions will be permitted to be filled during the period. This is a first for Hong Kong users that a major exchange has limited their access to derivatives products.
This comes just days after the exchange made a similar announcement for European investors. Users in Germany, Italy, and the Netherlands were addressed in the prior announcement. These initiatives, according to Binance, are beneficial to the industry. Such moves are necessary in order to “harmonise” with the growing number of crypto legislation around the world.
Binance also ceased margin trading using a number of foreign currencies other than the US dollar prior to the European shutdowns. The Euro, the Pound, and the Australian dollar were all impacted. The platform has recently been undergoing a series of major service adjustments as a result of continued warnings from various worldwide agencies.
The Financial Conduct Authority of the United Kingdom issued a warning to customers, urging them to proceed with caution when dealing with Binance markets. Binance, according to the FCA, operates outside of UK regulatory oversight. Canada and Japan had issued advisory warnings before the UK followed suit. Major financial regulators across the world are taking their time to make definitive determinations on crypto responsibilities.