Binance — the world’s largest cryptocurrency exchange by trading volume — today announced that it will be restricting the use of its derivatives products for customers from Hong Kong.
- Hong Kong customers will, with immediate effect, not be able to open new Binance deriviative product accounts, according to a Binance announcement posted at 5 p.m. Hong Kong time. Existing users will have to close any open positions within 90 days, with effect from a date yet to be announced.
- “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,” the announcement said.
- Binance’s move comes as it continues to limit its product range and step up compliance amid growing scrutiny from regulators around the world. Last month, Hong Kong’s Securities and Futures Commission issued a warning that Binance was not allowed to conduct “regulated activity” in the city, specifically trading in stock tokens.
- “New Binance users from Hong Kong can no longer open futures accounts and we will wind down access for existing users,” said Binance CEO Changpeng Zhao on Twitter. “This is one of many proactive measures Binance is taking to help establish crypto compliance best practices worldwide.” Earlier in the day, Zhao had tweeted: “@binance pivoting from reactive compliance to proactive compliance. Stay tuned.”