One of the world’s largest cryptocurrency exchanges, Binance, announced on Friday that it would prohibit Hong Kong users from trading derivative products. The latest in a series of changes to improve compliance standards.
Users will be unable to open new derivatives product accounts immediately. Moreover, Hong Kong users will be required to close their existing positions as of a date to be announced. According to the statement, this also was “in line with our commitment to compliance.”
Regulators in Hong Kong, as well as the United Kingdom, Germany, Japan, and Italy, have recently increased their tension on Binance. They concerned about consumer rights and the standard of anti-money laundering checks at crypto exchanges in general.
Zhao Changpeng, Binance’s CEO, stated last month that he wished to improve relations with regulators and that Binance would try to build regional headquarters, breaking with its centralized system.
Binance also announced last month that it would close its futures and derivatives operations in Germany, Italy, and the Netherlands.
