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

Bitcoin.com

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.”

How To Get Free Crypto  

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.

Coinbase Banner  

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.

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 disclaimer

Go to Source
Author: Jamie Redman


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.