The crypto exchange Binance has announced that it will no longer offer derivatives trading in the Hong Kong Special Administrative Region. CEO Changpeng Zhao speaks of “proactive compliance”.
Binance wants to act proactively – not just react
Somebody wanted to get ahead of the authorities: As the crypto exchange Binance announced on Friday, it will no longer offer users in Hong Kong trading in crypto futures and options. With immediate effect, new users based in Hong Kong will no longer be able to open accounts with Binance to trade crypto derivatives. Existing users should be given a time window of 90 days to close their open positions. It has not yet been stated when this time window will apply.
The Exchange in one message:
“As the market leader, Binance is constantly evaluating its range of products and services. We will restrict Hong Kong users on derivative products (including all futures, options, margin products and leveraged tokens) in line with our commitment to compliance. “
“Binance will be the first major cryptocurrency and digital asset exchange to proactively restrict derivatives access for Hong Kong users.”
Binance CEO Changpeng “CZ” Zhao uses the attention of the hour and suggests further changes of this kind. On Twitter, he writes to his 3.1 million followers:
“Binance is moving from reactive compliance to proactive compliance. Stay tuned.”
.@binance pivoting from reactive compliance to proactive compliance. Stay tuned.
– CZ 🔶 Binance (@cz_binance) August 6, 2021
CZ: Regulation makes crypto “indispensable”
This should mean: Instead of being whistled by regulatory authorities week after week, the world’s largest exchange in terms of volume is now independently active and “regulates” itself in a kind of anticipatory obedience positive sign ”.
“I believe that a well-developed legal and regulatory framework will be a solid long-term foundation that will make crypto truly indispensable in everyone’s daily life.”
In order for the crypto industry to grow further, the development of standards is crucial, according to the entrepreneur. CZ:
“And Binance wants to make a positive contribution.”
For this purpose, the Exchange says it has expanded its international compliance team and advisory board by 500% since 2020. One wants to continue to strive to work together with the supervisory authorities in order to “meet their concerns”. We know that we are “at a turning point” with the entire industry.
Derivatives trading was also discontinued in the interests of the broader crypto industry:
“Our goal is to create a sustainable ecosystem around blockchain technology and digital assets, and we hope these efforts will help the industry grow in the local market over the long term.”
The Binance token Binance Coin (BNB) has hardly responded to the news so far, the price rose by 1.8% within 24 hours.
Last updated on August 6, 2021
Top broker for buying and trading cryptocurrencies
- Buy real Bitcoin or Bitcoin CFDs
- Wallet and exchange in one
- 14+ cryptos
- Excellent trading tools
- Large knowledge and training database
- Very good spreads
Cryptocurrencies are a very volatile, unregulated investment product. Your capital is at risk.