TL;DR Breakdown
- Binance has officially declared that derivative products won’t be available for users in Hong Kong.
- Binance faced a lot of regulatory issues across many countries as it recently shut down stock tokens.
- Although, the crypto exchange hasn’t released a particular date for the restrictions to be imposed.
Binance, the world’s biggest cryptocurrency exchange, has received a lot of regulation pressure from organizations across the world. In order to reduce the risks involved with cryptocurrency investment, trading, and holding, Binance has made an announcement.
The organization has announced that it will drop its plans to resume cryptocurrency derivative products in Hong Kong to provide a safer crypto experience to the users in the country. The CEO has claimed this step as a “proactive measure.”
Restriction on derivative products, after-affect of China ban?
China has been known to harden its stance on cryptocurrencies, mining farms, as well as cryptocurrency exchanges. It seems that the ban on cryptocurrency derivative products is an after-effect of the recent crypto-crackdown by China.
There was an official statement released by the proper authorities, which claim that the steps are being taken to protect and improve the trading experience of people new to the crypto world in the country.
Although the exact date for the implementation of this ban in Hong Kong hasn’t been notified to the users, the organization has released this notice. The notice clears the fact that any user that will enter will have 90 days to decide his closing positing in the market.
This means that any user will have to cash in their investment before the stipulated time ends so that they do not suffer any loss.
It hasn’t been the first service that Binance has closed. Recently, Binance had also dropped stock tokens from the company’s list of services, and soon, a permanent ban will also be placed after all open positions have been closed.
