Binance Holdings Ltd. will no longer allow users from Hong Kong to open new futures accounts.
The largest crypto exchange by reported turnover said in a Twitter post that the move is effective immediately.
“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,” Binance said in a post on its website.
With immediate effect, users from Hong Kong cannot open new futures accounts on Binance.
As a market leader, #Binance is the first major crypto exchange to proactively take this action.
— Binance (@binance) August 6, 2021
The former British colony has tightened its oversight on cryptocurrency trading and requires all platforms to register with a local watchdog, and be subject to anti-money laundering and counter-terrorism financing rules. They can only serve professional investors, not retail traders, according to a government announcement in late May.
Binance, which has come under scrutiny in recent months from regulators in countries including the U.S., U.K., Malaysia and Thailand, said late last month in a press conference that it’s changing its mindset from that of a tech startup to acting as a financial institution, with all related licensing and compliance procedures in place.
The exchange is going to apply for licenses “everywhere,” Chief Executive Officer Changpeng “CZ” Zhao said at the time.
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