Binance, today announced that it will be restricting the use of its derivatives products for customers from Hong Kong. Users from Hong Kong will have a 90 days’ grace period to close their open positions from the Binance exchange. During the grace period, it wouldn’t allow its users to open any new positions.
“As the market leader, Binance constantly evaluates its product and service offerings. 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,” the announcement said.
This is not the first time Binance has made a decision to pull derivatives from the exchange. Last week, Binance announced it was winding down its futures and derivatives products for the European market.
“We’re continually evaluating our products and working with our parents to meet our users’ needs,” the exchange tweeted.
Binance’s move comes as it continues to limit its product range and step up compliance amid growing scrutiny from regulators around the world. Last month, Hong Kong’s SFC issued a warning disabling Binance to not conduct “regulated activity” in the city, specifically trading in stock tokens.
Several industry bodies have also cut off binance. UK banks have blocked account holders from depositing money on the exchange. SEPA Euro bank deposits were also suspended last month.