Binance Stops All Futures and Derivatives Trading in Hong Kong, Shifts to Proactive Compliance

Just a week after ending similar trading products in some European countries, Binance closes the door on the Chinese enclave.

By
Kyle Heise
on
August 7, 2021
Category:
BSC News

Proactive Compliance

The top cryptocurrency exchange in the world, Binance, is halting derivatives trading in Hong Kong effective 09:00 UTC, August 6.  The restrictions will include all futures, options, margin products, and leveraged tokens. Users will have 90 days to close their accounts.

Hong Kong citizens are the latest location to see their derivatives trading stopped by Binance. The move by Binance is a continuation of several actions of the past few months to comply with local regulations around the world. 

“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,” read the official Binance announcement from August 6
Source


Binance Is Under Pressure

Regulators around the world have ramped up their scrutiny and pressure against Binance. Binance’s announcement came just three weeks after the Securities and Futures Commission of Hong Kong issued Binance a warning against unregulated virtual asset trading

Just a week ago, Binance halted futures and derivatives trading in several European countries

“This [Hong Kong Compliance] is one of many proactive measures Binance is taking to help establish crypto compliance best practices worldwide,” Tweeted Binance CEO Changpeng Zhao (CZ). He also added a Tweet just before the announcement saying that Binance is “pivoting from reactive compliance to proactive compliance. Stay tuned.”

Binance continues to try and be on the front foot with regulation. As the company begins a slow transition to become more than just a crypto exchange and more like a financial institution, regulators will be watching closely. A pivot to proactive would be a solid step for Binance and its plans.

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Kyle Heise

Born and raised in the East Bay of California. He has studied and worked on three continents and lived in eight countries. Kyle resides in San Francisco. He holds bags mostly in Ethererum, Cake, and BSC GameFi projects.

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