Right after Binance’s latest announcement to halt crypto derivative offerings in Germany, Italy and the Netherlands, the company revealed on Friday that crypto derivatives in Hong Kong will also cease. As of today, users will not be able to open new derivative positions and clients with existing derivative positions will have 90 days to close them.
Binance Ends Crypto Derivatives Offerings in Hong Kong
Binance revealed on August 6 that the exchange will no longer offer crypto derivatives to clients. The news follows the company’s current issues with global regulators and major financial institutions ceasing to serve Binance. On August 3, Bitcoin.com News reported how HSBC became the latest financial institution to suspend operations with the company. Three days later, Binance revealed that it was “restricting derivative product offerings in Hong Kong.”
According to the announcement, the change is aligned with the exchange’s compliance initiatives. “With immediate effect, Hong Kong users will not be able to open new derivative accounts,” Binance said Friday. “In addition, from a date to be announced in a subsequent notice, Hong Kong users will have a 90-day grace period to close their open positions. During the grace period, no new positions can be opened.
On August 3, when Binance revealed that it would no longer provide these services to residents in Italy, the Netherlands and Germany, Binance’s official statement explained that it was for the same reasons. “As the crypto ecosystem evolves globally, we are continually evaluating our products and working with our partners to meet the needs of our users,” Binance said at the time.
Binance claims to be the first exchange to proactively restrict access to crypto derivatives
In fact, despite all the negative press, Binance believes the exchange is a trailblazer when it comes to being proactive when it comes to regulatory compliance. “Binance will be the first major cryptocurrency and digital asset exchange to proactively restrict access to derivatives to users in Hong Kong,” the company’s announcement highlights. “Our goal is to create a sustainable ecosystem around blockchain technology and digital assets, and we hope that such efforts will help the industry to grow in the local market in the long term,” adds the exchange notice. of crypto to customers.
Meanwhile, a recent report released on July 30 noted that bans on crypto derivative offerings from exchanges like FTX and Binance in heavily regulated regions like the United States are full of loopholes. Although Binance proactively restricts access to crypto derivatives, the trading platform is still the largest derivatives exchange in terms of open interest and trading volume. Statistics show that Binance recorded a whopping $ 75 billion in volume in the past 24 hours and $ 7.9 billion in open interest.
What do you think of Binance’s shutdown of crypto derivatives for Hong Kong residents? Let us know what you think of this topic in the comments section below.
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