Binance Shuts Down Crypto Derivatives Accounts for New Users in Hong Kong

Binance Shuts Down Crypto Derivatives Accounts for New Users in Hong Kong

The head of the Binance exchange, Changpeng Zhao (often known as simply CZ), just tweeted that Binance will immediately stop opening new accounts for trading crypto derivatives for new users in Hong Kong.

It will also restrict access to trading crypto futures and other derivatives for the owners of already-existing accounts.

New Binance users from Hong Kong can no longer open futures accounts and we will wind-down access for existing users.This is one of many proactive measures Binance is taking to help establish crypto compliance best practices worldwide.https://t.co/D1JKx52O7T— CZ 🔶 Binance (@cz_binance) August 6, 2021

According to a blog post shared by CZ, existing users in Hong Kong have three months (90 days) to close their positions on crypto futures, options, tokens traded on leverage and margin products offered by Binance.

Binance is going to be the first large crypto exchange to decrease access to crypto derivatives trading in Hong Kong. This is part of the exchange's current policy and its strong commitment to compliance.

As covered by the media previously, a Hong Kong regulator (the local Securities and Futures Commission) announced that the Binance Group does not have a license to perform any regulated activity in Hong Kong.

Earlier, U.Today reported that Binance would shut down access to crypto derivatives trading in the countries of Europe, starting with Germany, Italy and the Netherlands.

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