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Binance Shuts Down Crypto Derivatives Accounts for New Users in Hong Kong

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Fri, 08/06/2021 - 09:29
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Yuri Molchan
Largest crypto exchange intends to stop opening new accounts for trading crypto derivatives in Hong Kong as it strives to impose stronger compliance policy
Binance Shuts Down Crypto Derivatives Accounts for New Users in Hong Kong
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The head of the Binance exchange, Changpeng Zhao (often known as simply CZ), just tweeted that Binance will immediately stop opening new accounts for trading crypto derivatives for new users in Hong Kong.

It will also restrict access to trading crypto futures and other derivatives for the owners of already-existing accounts.

According to a blog post shared by CZ, existing users in Hong Kong have three months (90 days) to close their positions on crypto futures, options, tokens traded on leverage and margin products offered by Binance.

Binance is going to be the first large crypto exchange to decrease access to crypto derivatives trading in Hong Kong. This is part of the exchange's current policy and its strong commitment to compliance.

As covered by the media previously, a Hong Kong regulator (the local Securities and Futures Commission) announced that the Binance Group does not have a license to perform any regulated activity in Hong Kong.

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Earlier, U.Today reported that Binance would shut down access to crypto derivatives trading in the countries of Europe, starting with Germany, Italy and the Netherlands.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.