Regulatory Pressure Is Forcing Binance To Make Tough Changes
The regulatory pressure on Binance is forcing the cryptocurrency exchange to make some changes to how it operates in various parts of the world.
Binance To Stop Derivative Trading Services In Hong Kong
Leading crypto exchange Binance announced earlier today that its users in Hong Kong would no longer be able to access derivative trading services. The exchange said the services would be stopped over the next 90 days as it looks to comply with the local regulations.
Binance has come under heavy regulatory pressure in various parts of the world, and this has prompted many changes in how it operates. In this latest development, Binance said its Hong Kong users would no longer be allowed to open derivative trading accounts. In addition to these, the existing derivative traders have been given a 90 days’ grace period to close their open positions. During this period, the traders would not be allowed to open new positions in the market.
The crypto exchange said, “Our aim is to create a sustainable ecosystem around blockchain technology and digital assets, and we hope that such efforts will help the industry grow in the local market in the long-run.”
The move came a week after it announced that Binance users from Europe would no longer be able to trade crypto futures and derivatives products. Binance stated numerous times that these actions are to ensure that it complies with the regulations put in place in various countries.
Binance Makes Changes To Operations
The cryptocurrency exchange has come under heavy regulatory pressure in recent weeks, especially in Europe. The UK’s FCA banned Binance Markets Limited from operating in the country, leading to some banks such as HSBC, Santander and Barclays blocking transactions to the exchange. Furthermore, regulators in Malaysia and Italy made similar announcements, stating that Binance isn’t licensed to operate in those countries.
The BNB coin is up by nearly 2% over the past 24 hours despite the negative news around the cryptocurrency exchange. Year-to-date, BNB is one of the best performing coins, rising by nearly 1000% to date. It began 2021 trading at $38 per coin, but it is now trading above $330.