Fun

Binance Restricts Crypto Derivatives Products in Hong Kong, Existing Positions Have 90 Days to Close

News Feed - 2021-08-07 07:08:47

Binance Restricts Crypto Derivatives Products in Hong Kong, Existing Positions Have 90 Days to Close


Fresh off the heels of Binance’s last announcement to discontinue crypto derivatives offerings in Germany, Italy, and the Netherlands, the company revealed on Friday crypto derivatives products in Hong Kong will cease as well. Effective immediately, users won’t be able to open new derivatives positions and customers with existing derivatives positions 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 products to customers. The news follows the company’s current issues with global regulators and large financial institutions ceasing to service 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 it is “restricting derivatives products offerings in Hong Kong.”


According to the announcement, the change is aligned with the exchange’s compliance initiatives. “With immediate effect, users from Hong Kong will not be able to open new derivatives products accounts,” Binance said on Friday. “Also, with effect from a date to be announced in a later notice, 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.”


On August 3, when Binance revealed it would no longer provide these services to residents in Italy, the Netherlands, and Germany, Binance’s official statement explained 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 our users’ needs,” Binance said at the time. Binance Claims to Be First Exchange to Proactively Restrict Access to Crypto Derivatives


In fact, despite all the negative press, Binance believes the exchange is a pioneer when it comes to being proactive with regulatory compliance. “Binance will be the first major cryptocurrency and digital assets exchange to proactively restrict access to derivatives products to Hong Kong users,” the company’s announcement emphasizes. “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 crypto exchange’s notice to customers adds.


Meanwhile, a recent report published on July 30, noted that bans on crypto derivatives offerings from exchanges like FTX and Binance in heavily regulated regions like the United States are full of loopholes. Despite Binance proactively restricting access to crypto derivatives products, the trading platform is still the largest derivatives exchange in terms of open interest and trade volume. Statistics show Binance has seen a massive $75 billion in volume during the last 24 hours and $7.9 billion in open interest.


What do you think about Binance shutting down crypto derivatives products for Hong Kong residents? Let us know what you think about this subject in the comments section below. Binance US CEO Steps Down as the Crypto Exchange Faces Rising Regulatory Scrutiny EXCHANGES | 30 mins ago Buda Exchange Starts Requesting Selfie Verification for Withdrawals to New Bitcoin Addresses EXCHANGES | 5 days ago Tags in this story announcement, Binance, Binance derivatives exchange, Binance Exchange, Compliance, crypto derivatives products, derivatives, derivatives exchange, ftx, Futures, Germany, Italy, largest derivatives exchange, Open Interest, pro-active, Regulation, Regulatory Compliance, The Netherlands, volume


Image Credits: Shutterstock, Pixabay, Wiki Commons Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

Solana Eyes $200 Target As It Gains Momentum – Recovery Could Mirror 3-Month Downtrend
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Arijit Sarkar13 hours agoCrypto Twitter has a persistent ‘fake followers’ problem, data revealsShiba Inu had the greatest number of fake followers at 10.26% or 80,000 accounts, while Avalanche and Polygon followed su
Spellfire: NFT That You Can Actually Touch
Spellfire: NFT That You Can Actually Touch sponsored In recent months NFT or as it coded, non-fungible tokens became a hot topic that everyone is talking about. NFT is a valuable mo
Indian Finance Minister Answers Questions on Cryptocurrency Plans and Ban Proposal
Indian Finance Minister Answers Questions on Cryptocurrency Plans and Ban Proposal India’s Finance Minister Nirmala Sitharaman has answered some questions
Bitcoin Mining Power Sees Short-Term Drop as Rainy Season Ends in China
After sustained growth over the past three months, computing power on the bitcoin network has seen a fallback as the summer rainy season trails off in China. According to data from
Technical Analysis: Terra Luna Drops 20%, While Symbol Token Climbs on Friday
Technical Analysis: Terra Luna Drops 20%, While Symbol Token Climbs on Friday Terra (Luna) was one of this week’s biggest crypto losers, falling by as much as 20% during Fri
South Korea Pauses CBDCs, Stablecoins Heat Up: Here’s Why Best Wallet Wins the New Crypto Framework
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Popular BTM Operator: Bitcoin of America Continues Rapid Expansion in 2022
Popular BTM Operator: Bitcoin of America Continues Rapid Expansion in 2022 sponsored Bitcoin of America is a popular virtual currency exchange, registered as a money services busine
POPCAT’s Firm Support At $1 Reignites Rally Toward New Heights
Este artículo también está disponible en español. POPCAT has reignited excitement in the market as buyers stepped in at the crucial $1 support level, halting the recent p
5 New Crypto to Explode as Trump Starts New Crypto Venture with Charles Schwab
Este artículo también está disponible en español. Trump Media & Technology Group (TMTG) has announced a new crypto venture, Truth.Fi, in partnership with Charles Schw
Brazilian Burger King Customers Can Now Purchase Meat-Flavored Dog Biscuits With Dogecoin
Brazilian Burger King Customers Can Now Purchase Meat-Flavored Dog Biscuits With Dogecoin According to regional reports, the Burger King franchise in Brazil has
Satoshi Nakamoto Kidnapped, Tortured by NSA to Destroy Crypto in New Movie ‘Decrypted’
Satoshi Nakamoto Kidnapped, Tortured by NSA to Destroy Crypto in New Movie "Decrypted"Decrypted, a new crypto movie about Satoshi Nakamoto, the mysterious creator of Bitcoin, is in