Binance, a Singapore-based global cryptocurrency exchange, announced Friday that not allow Hong Kong users to open new derivatives accounts, effective immediately.
Binance stated that it would give users of Binance who have opened accounts a 90-day grace period to deal with existing derivatives product accounts to close their open positions, and Hong Kong customers who have held relevant positions are not allowed to open new positions.
To fulfil the compliance of local regulatory agencies, Binance will restrict Hong Kong users from using derivative products (including all futures, options, margin products, and leveraged tokens).
It also stated that they would become the first major cryptocurrency and digital asset exchange that actively restricts Hong Kong users from using derivative products.
This is the latest Binance’s series of measures to strengthen its compliance measures to quell global regulators’ concerns about local requirements.
Except for Hong Kong, Binance no longer provided crypto-based futures and derivatives in the three European countries, the Netherlands, Italy, and Germany, according to the official announcement on July 30.
Image source: Shutterstock