Binance Cryptocurrency Exchange to Stop Hong Kong Users From Trading Derivatives

Binance’s Hong Kong users will have to close their existing positions from a date to be announced.

Binance, one of the world’s largest cryptocurrency exchanges, said on Friday it would restrict Hong Kong users from trading derivative products, the latest in a series of changes the exchange has made to improve compliance standards.

Users will not be able to open new derivatives products accounts with immediate effect, and Hong Kong users will have to close their existing positions from a date to be announced, the statement said, adding this was “in-line with our commitment to compliance”

Regulators in Hong Kong as well as in Britain, Germany, Japan and Italy have been ratcheted up pressure on Binance in recent month, worried about consumer protection and the standard of anti-money laundering checks at cryptocurrency exchanges generally.

Last month, the exchange’s CEO, Zhao Changpeng, said he wanted to improve relations with regulators and that Binance would seek to establish regional headquarters, breaking with its decentralised structure.

Binance also said last month it would wind down its futures and derivatives business in Germany, Italy and the Netherlands.

Binance, one of the world’s largest cryptocurrency exchanges, announced on Friday that it will limit Hong Kong users from trading derivative products. This is the latest in a series of changes made by the exchange to improve compliance standards.

According to the statement, users will not be able to open new derivative product accounts immediately and Hong Kong users will be required to close their existing positions from the date of the announcement. He added that this was “in line with compliance efforts.”

Regulators in the UK, Germany, Japan and Italy, as well as Hong Kong, put pressure on Binance last month, worried about consumer protection and standards for money laundering prevention checks on common crypto exchanges. increase.

Last month, exchange CEO Zhao Changpeng said he wanted to improve relations with regulators and that Binance would break the decentralized structure and set up a regional headquarters.

Binance announced last month that it will end its futures and derivatives businesses in Germany, Italy and the Netherlands.

© Thomson Reuters 2021

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