Cryptoexchange Binance to stop Hong Kong users trading derivatives

FILE PHOTO: Binance app is seen on a smartphone in this illustration taken, July 13, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

HONG KONG (Reuters) – Binance, one of the world’s largest cryptocurrency exchanges, said on Friday it would restrict Hong Kong users from trading derivative products, the latest in a series of changes the exchange has made to improve compliance standards.

Users will not be able to open new derivatives products accounts with immediate effect, and Hong Kong users will have to close their existing positions from a date to be announced, the statement said, adding this was “in-line with our commitment to compliance”

Regulators in Hong Kong as well as in Britain, Germany, Japan and Italy have been ratcheted up pressure on Binance in recent month, worried about consumer protection and the standard of anti-money laundering checks at crypto exchanges generally.

Last month, the exchange’s CEO, Zhao Changpeng, said he wanted to improve relations with regulators and that Binance would seek to establish regional headquarters, breaking with its decentralised structure.

Binance also said last month it would wind down its futures and derivatives business in Germany, Italy and the Netherlands.

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