September 30, 2022

Crypto Exchange Binance Ceases Hong Kong Futures As Regulatory Pressure Piles Up

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Crypto Exchange Binance has announced that users from Hong Kong can no longer produce new futures accounts.

Crypto Exchange Binance Haults New Hong Kong Futures Accounts

Binance announced today in an article on its site that the crypto exchange is winding down derivative trading in Hong Kong.

The announcement describes:

As the marketplace leader, Binance constantly examines its product or services offerings. We will be restricting Hong Kong users in respect of derivatives items (including all futures, alternatives, margin products and leveraged tokens) in-line with our commitment to compliance.

The move comes into “immediate result” for new accounts. While existing users will get a 90-day grace duration throughout which they can close their open positions.

The blog post notes that this grace period will only begin at a later date, which will be announced soon. Likewise, during this grace duration, users can’t open any brand-new positions.

Throughout the previous few months, the crypto exchange has actually dealt with several difficulties associated with guideline around the world. Nations like the UK, United States, Malaysia, Italy, and Thailand have all provided cautions to the company.

Simply last month, Hong Kong’s financial regulator clarified that Binance can’t carry out regulated activities within the country.

Recently, the crypto exchange revealed that moving on it will follow all compliance treatments and associated licensing.

Related Reading|Malay Regulators Pile Pressure On Binance, As It Pulls Euro Futures And Derivatives

Binance will be the first major cryptocurrency and digital possessions exchange to proactively restrict access to derivatives products to Hong Kong users.

In a comparable move last month, the organization announced that it’s stopping stock tokens, something the Hong Kong financial regulator has showed issues about.

Binance is currently the biggest crypto exchange in the world by trading volume, with practically $21 billion in volume.

Bitcoin Price

At the time of composing, BTC’s cost drifts around $40.9 k, up 5% in the last 7 days. Over the past 30 days, the crypto appears to have built up 18% in gains.

Here is chart that shows the trend in the worth of Bitcoin over the last 3 months:

Bitcoin Price Chart

 BTC's cost zig-zags around the$40k mark|Source: BTCUSD on TradingView After a short sag following a touch of the $42k mark, Bitcoin seems to be back on an upwards trend as the crypto successfully breaks the $40k resistance once more.

Yesterday, an 11k BTC inflow to the crypto exchange Binance triggered a 5% decrease in the cost of the cryptocurrency.

Associated Reading|Bitcoin Miners See 31% Uptick In Revenue As Hash Crash Recovery Continues

Right now, BTC seems to be consistently wobbling up and down the $40k level, but the fact that it's not jumping right back up after touching it might prove to be a favorable indication. Nevertheless, it's still uncertain whether Bitcoin can keep the trend up or if it will start a drop from here on.