Hong Kong: Binance has shut down customers' access to crypto derivatives trading

Cryptocurrency exchange Binance announced that it has expanded access restrictions to its derivatives platform. A week ago, the company announced that it would close futures to Europeans, starting with Germany, Italy and the Netherlands. Hong Kong was added today.

Bitcoin exchange Binance closed users from Hong Kong to trade crypto derivatives, including futures, options, leveraged tokens and margin products. The decision was attributed to obligations to comply with local laws.

"Hong Kong users will no longer be able to open new accounts for derivative products. The decision is effective immediately. In addition, Hong Kong users will be required to close active positions within 90 days from a date to be announced at a later date. It will not be possible to open new positions during this period," the notice reads. - We will restrict Hong Kong users' access to derivative products (including all futures, options, margin products and leveraged tokens) in line with our own commitment to legal compliance.

The CEO Changpeng Zhao said Binance will take a more proactive stance on regulatory compliance, abandoning a reactive approach to compliance in favor of a proactive one. He stressed that restrictions on Hong Kong residents are just one of many measures.

Binance also notes that it will be "the first major cryptocurrency and digital asset exchange to proactively restrict access to derivative products for Hong Kong users."

"We are committed to creating a sustainable ecosystem around blockchain technology and digital assets and hope that such endeavors will help the industry grow in local markets in the long term," she adds.

In May, it was reported that the Hong Kong Financial Services Bureau intends to require all crypto exchanges to be licensed and restrict access to trading by professional investors. Until now, exchanges could register with the Hong Kong Securities and Futures Commission at their own discretion. In addition, according to the authorities' proposal, a fine of HK$5 million (US$644,000) and up to seven years in prison could be imposed on operators of illegal crypto exchanges.

"Binance is moving from reactive to proactive legal compliance. Stay tuned," Binance CEO Changpen Zhao wrote today.

In July, the Hong Kong Securities and Futures Commission issued a warning that none of the entities within the Binance Group had its licenses. The regulator's notice referred to tokenized shares on the Binance platform, which the exchange has since removed from trading.

06.08.21

Search by keyword: