Binance: trading restrictions for Hong Kong users

Binance’s main crypto exchange has stepped up efforts to minimize the inherent risks in the cryptocurrency trade and announced that it will restrict access to derivative products for users in Hong Kong.

The official announcement is:

“Hong Kong users will have 90 days to close their open positions. No new positions may be opened during the grace period. “

CEO Changpeng Zhao said the move was intended to be a “proactive measure” to establish “best practices for compliance with cryptocurrency rules worldwide.”

Zhao also summarized developments related to Hong Kong and stated:

“New Binance users from Hong Kong can no longer open futures accounts and we will terminate access for existing users.”

Regulatory challenges

Binance continues to face regulatory challenges in more countries due to the alleged offer of a platform for illegal trade. In an effort to keep the door open for business, Binance is reportedly in an effort to stop offering high-risk services. The crypto exchange has announced the suspension of derivatives trading in Europe, starting with Germany, Italy and the Netherlands.

This step signals proactive steps to harmonize crypto controls. However, the Malaysian Securities and Exchange Commission has asked Binance to cease operations in its region. Binance allegedly operated under Malaysian jurisdiction, but had no government permission to do so.

In addition, the German financial regulator, the Federal Office for Financial Supervision, aka BaFin, also warned Binance that it would face heavy fines for selling shares in Germany in the form of “tokens” without offering the necessary prospectuses.

Conclusion

While Binance’s proactive ban on users in Hong Kong may tend to protect new users, developments appear to be more in line with China’s increased cryptocurrency.