Binance Restricted Derivatives Products In Hong Kong Immediately

Binance restricted derivatives products in Hong Kong effective immediately so now users will no longer be able to open new derivatives products accounts as we can see more in our latest Binance news today.

On a date to be announced, Hong Kong users will get a  90-day grace period to close their open positions. The exchange added that the decision is in line with the commitment to compliance:

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

This is not the first time Binance made a decision to pull the derivatives from the exchange but a week ago, Binance did announce it was winding down its futures and derivatives products for the EU market. At the time, the exchange said that the shutdown will start in Germany before moving to the Netherlands and Italy. Unlike the announcement from today,  last week’s announcement was not made with compliance in mind but because of the needs of the exchange’s users:

“We’re continually evaluating our products and working with our parents to meet our users’ needs.”

Today’s announcement came right when Binance is embroiled in several regulatory controversies across the world. A month ago, the UK Financial Conduct Authority issued a consumer warning which said that Binance was not permitted to undertake a regulated activity in the UK. The FCA also raised some money laundering concerns about the UK entity of the exchange. Now, Binance restricted derivatives products in Hong Kong after regulators from Italy, Japan, Malaysia, and the Cayman Islands all said that binance is not regulated and authorized to do business in these countries.

The exchange was cut off by several industry bodies like UK banks including Santander, Barclays, and Natwest which all blocked accounts for holders that deposited money on the exchange. SEPA Euro bank deposits were also suspended a month ago.

As recently reported, The global crypto exchange Binance continues restricting support for trading services amid the ongoing regulatory crackdown. According to the announcement, Binance will delist GBP, EUR, and AUD margin trading pairs. According to the announcement, Binance will suspend the mentioned fiat trading pairs, and then it will switch to automatic settlement and cancel all related pending orders.

Source: https://www.dcforecasts.com/binance-news/binance-restricted-derivatives-products-in-hong-kong-immediately/