Binance is the world’s foremost blockchain ecosystem and digital asset exchange. When Binance makes a big market move, the entire fintech world is watching. Their latest update is one of many, and perhaps more to come, to size down their offerings.
From now on, users in Hong Kong cannot open new derivatives products accounts. In addition to this update, Binance told of a later announcement, which will place into effect a 90-day grace period for HK-based users to close any remaining open positions. During this time no new positions will be allowed to proceed.
Binance is the first leading digital asset exchange to restrict access to derivatives products to Hong Kong users.
This announcement comes only a few days after Binance announced the same for European investors. The previous statement targeted users in Germany, the Netherlands, and Italy. Binance highlights these steps as positive ones for the industry. These actions are taken in order to “harmonize” with increasing crypto regulations worldwide.
Prior to European shut-downs, Binance also halted margin trading using a handful of global currencies other than the U.S. dollar. Those affected included the Australian dollar, the Euro, and the Pound.
Warnings for Binance
The recent string of big service changes come as Binance continues to receive warnings from various global institutions.
A major blow to Binance was the warning from the UK’s Financial Conduct Authority, Specifically it urged consumers to act with hesitancy toward Binance markets. The FCA claimed Binance works outside regulatory operations in the UK. The UK followed Canada and Japan, two countries that also issued similar advisories.
This sparked a domino effect of similar warnings from other countries including Lithuania and Hong Kong.
Binance calls its recent scaling down a move in the right direction to comply with global regulations. However, as many regulators have yet to make concrete decisions regarding crypto obligations, Binance and other exchanges anxiously await restrictions.