One of the world’s leading crypto exchanges, Binance, revealed in a Tweet that it would no longer allow users from Hong Kong to open new futures accounts. The exchange said that the move is effective immediately. “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 said in a post on its website.
Hong Kong tightens its oversight on cryptocurrency trading.
Hong Kong has tightened its oversight on cryptocurrency trading. Financial regulators in the country require all platforms to register with a local watchdog and be subject to anti-money laundering and counter-terrorism financing rules. According to a government announcement in late May, they can only serve professional investors, not retail traders. Hong Kong has also been facing political turmoil as Beijing continues to strengthen its stronghold on the former British colony. Binance has also been facing regulatory scrutiny from regulators across countries in the last few months.
Binance announces to work towards regulatory compliance.
Binance CEO Changpeng Zhao had previously announced that the crypto company would shift gears and begin working towards regulatory compliance across the globe. Zhao Tweeted several posts later last month about the direction of his exchange. Binance CEO stated that he had hosted a one-hour press conference and shared important updates after the call ended. The posts serve to catch the public up on what steps the company is making toward its goal of gaining global compliance with regulators. Over the past few months, the crypto exchange giant has been under fire by regulators in numerous countries, including Canada, Italy, Japan, Hong Kong, Lithuania, Thailand, and Great Britain.