Crypto Exchange Binance Restricts Derivatives Services in Hong Kong

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.

In July 2021, Santander UK, a British bank owned by the Spanish Santander Group, decided to block retail Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term to Binance.

Crypto Regulations

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 Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term 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.