Binance says it will no longer allow users from Hong Kong to open futures accounts.
According to an official announcement, the huge exchange plans to restrict users “in respect of derivatives products (including all futures, options, margin products and leveraged tokens) in-line with our commitment to compliance”.
“Users from Hong Kong will have a 90 days grace period to close their open positions,” a statement said.
“During the grace period, no new positions may be opened.”
Binance’s CEO – Changpeng Zhao – said he decided on this step as he wanted it to represent a “proactive measure” for establishing “crypto compliance best practices worldwide”, and that includes Hong Kong restrictions.
New Binance users from Hong Kong can no longer open futures accounts and we will wind-down access for existing users.
— CZ 🔶 Binance (@cz_binance) August 6, 2021
Binance under harsh scrutiny in Asia and Europe
For some time now, Hong Kong officials have been tightening the oversight on cryptocurrency trading while, at the same time, forcing all platforms to register with a local government and to be subject to anti-money laundering and counter-terrorism financing rules.
In May this year, the government stated platforms could only serve professional investors and not retail traders.
Binance, which has come under numerous regulatory challenges in the last few months in the US, UK, Malaysia and Thailand, recently said it would be changing its mindset from that of a tech start-up to acting as a financial institution, with all related licensing and compliance procedures in place.
Germany’s financial watchdog – the Federal Financial Supervisory Authority – said it was considering heavy fines for Binance over its alleged selling of “share tokens”.
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