{"id":316882,"date":"2021-08-06T13:47:36","date_gmt":"2021-08-06T10:47:36","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/binance-to-restrict-derivatives-trading-for-hong-kong-users\/"},"modified":"2021-08-06T13:47:36","modified_gmt":"2021-08-06T10:47:36","slug":"binance-to-restrict-derivatives-trading-for-hong-kong-users","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/binance-to-restrict-derivatives-trading-for-hong-kong-users\/","title":{"rendered":"# Binance to restrict derivatives trading for Hong Kong users"},"content":{"rendered":"

“# Binance to restrict derivatives trading for Hong Kong users <\/strong>”
\n<\/p>\n

Stepping up efforts to minimize the inherent risks of trading cryptocurrency, major crypto exchange Binance has announced it would restrict access to derivatives products to Hong Kong users. The official announcement<\/a>\u00a0reads:<\/p>\n

\u201cUsers from Hong Kong will have a 90 days\u2019 grace period to close their open positions. During the grace period, no new positions may be opened.\u201d<\/p><\/blockquote>\n

However, Binance\u2019s proactive means to restrict Hong Kong users was not supported by a date of when the restrictions will be imposed. To provide clarity behind Binance\u2019s latest restrictions, CEO Changpeng Zhao said<\/a> the move is aimed to be a \u201cproactive measure\u201d for establishing \u201ccrypto compliance best practices worldwide.\u201d<\/p>\n

Zhao also summarized Hong Kong-related developments, stating:<\/p>\n

\u201cNew Binance users from Hong Kong can no longer open futures accounts and we will wind-down access for existing users.\u201d<\/p><\/blockquote>\n

While Binance\u2019s proactive ban on Hong Kong users may tend to protect new users, the development seems to be more in line with China\u2019s increased crackdown on crypto business with no exception on exchanges, mining or token offerings.\u00a0<\/p>\n

Related:<\/em> Binance to shut down crypto derivatives trading in Europe<\/em><\/strong><\/p>\n

Binance continues to face regulatory challenges across multiple countries for allegedly offering a platform for illegal trades. In an effort to keep doors open for business, Binance\u00a0is reportedly on a quest to stop offering high-risk services. As of the latest, the crypto exchange announced the suspension of derivatives trading in Europe, starting with Germany, Italy and the Netherlands. <\/p>\n

As Cointelegraph reported, the move signaled Binance\u2019s\u00a0proactive steps toward harmonizing crypto regulations. However, the Securities Commission Malaysia asked Binance to shut operations within its region completely. Binance was reportedly operating within the Malaysian jurisdiction despite no authorization from the government. <\/p>\n

Adding to the mix, Germany\u2019s financial watchdog, the Federal Financial Supervisory Authority, aka BaFin, has also warned Binance of facing heavy fines on the grounds of selling shares in Germany in the form of \u201cshare tokens\u201d without offering the necessary prospectuses.<\/p>\n<\/div>\n