Futures trading accounts for new Hong Kong users will no longer be allowed on Binance. Because they want to adhere to regulatory rules at a higher level, they are taking this step.
The decision to suspend derivative trading has an impact on both new and old users.
According to Changpeng Zhao, CEO of Binance Exchange, every new account will be stopped to create futures trading features. As of right now, this will go into effect without any delays.
CZ indicated in the blog post that all current futures traders should remove their positions from Binance’s crypto futures, options, tokens sold on leverage, and margin products.
By trade volume, Binance Exchange is the largest cryptocurrency exchange. Additionally, they are attempting to become licenced and regulated cryptocurrency exchanges on a global scale. As a result, they are required to make mandatory decisions to follow regulators’ guidelines.
It’s important to keep in mind that Binance is beginning to phase out futures trading in nations with heavy regulatory attention. They recently decided to stop trading derivatives in Europe.