Binance is yet to imposing restrictions on derivatives products for Hong Kong users.
In efforts to minimize the inherent risks of trading cryptocurrency, the major crypto exchange announced it would restrict access to derivatives products to Hong Kong users. The official announcement reads:
“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.”
To provide clarity behind Binance’s latest restrictions, Changpeng Zhao the CEO of Binance said the move is aimed to be a “proactive measure” for establishing “crypto compliance best practices worldwide.”
Binance’s proactive ban on Hong Kong users may tend to protect new users, the development seems to be more in line with China’s increased crackdown on crypto business with no exception on exchanges.
However Binance continues to face regulatory challenges across multiple countries for allegedly offering a platform for illegal trades. In an effort to keep doors open for business, Binance is reportedly on a quest to stop offering high-risk services. As of the latest, the crypto exchange announced the suspension of derivatives trading in Europe, starting with Germany, Italy and the Netherlands.
