Binance Users in Hong Kong will no longer be able to have access to the derivatives trading feature. The world’s biggest cryptocurrency exchange has announced sweeping restrictions on its derivatives products for users in Hong Kong.
In its official statement, announcing the restrictions Binance said: “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.”
The new announcement is ambiguous and doesn’t clarify when exactly the restrictions will be fully imposed. CEO Changpeng Zhao, Binance CEO explained that it’s a “proactive measure” and is in line with the company’s policy to ensure compliance.
Commenting on the Hong Kong centric announcement Zhao said: “New Binance users from Hong Kong can no longer open futures accounts and we will wind down access for existing users.”
Binance Facing Heat From Regulators
Recently, Binance has been in hot waters with several regulators including the British HMRC. The top regulator in the country had charged Binance for non-compliance and had asked users to stay away from it. Just about a week ago, the Malaysian SC issued a notice warning Binance to shut operations in the country.
Responding to the new and upcoming regulatory mandates, Binance has started trimming the limits for future and derivative trading for its new and existing customers. The global cryptocurrency exchange is also rolling back several services it offered in certain countries like the Netherlands, Germany and Italy.