Binance, one of the most prominent crypto exchanges in the world, announced today that the company is restricting its derivatives products offerings in Hong Kong.
According to an official announcement released by the crypto exchange, users from Hong Kong will not be able to open new derivatives products accounts. Binance added that the company’s existing users in Hong Kong will have a grace period of 90 days to close their open positions.
The latest announcement from Binance came nearly one week after the company stopped derivatives offerings in three European countries. Additionally, the crypto exchange is facing issues in India and Malaysia.
“With immediate effect, users from Hong Kong will not be able to open new derivatives products accounts. 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. As the market leader, Binance constantly evaluates its product and service offerings. We will be restricting Hong Kong users in respect of derivatives products (including all futures, options, margin products and leveraged tokens) in line with our commitment to compliance,” Binance mentioned.
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In July 2021, Santander UK, a British bank owned by the Spanish Santander Group, decided to block retail payments to Binance.
Due to the latest surge in the adoption of digital currencies, regulatory authorities around the world have started taking strict measures against non-regulated crypto products. Yesterday, in an interview with CNBC, Gary Gensler, the Chairman of the US Securities and Exchange Commission (SEC), termed Bitcoin and other cryptocurrencies as speculative assets.
In the recent announcement, Binance mentioned that the company is planning to create a sustainable crypto ecosystem. “Binance will be the first major cryptocurrency and digital assets exchange to proactively restrict access to derivatives products to Hong Kong users. 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,” Binance added.