Changpeng Zhao, head of Binance exchange, known as CZ, tweeted that Binance will immediately stop opening new crypto derivatives trading accounts for new users in Hong Kong.

New Binance users from Hong Kong can no longer open future accounts and we will end access for existing users.

This is one of many proactive actions Binance is taking to help establish best crypto compliance practices around the world.

– CZ 🔶 Binance (cz_binance) August 6, 2021

Binance will also restrict access to trading cryptocurrency futures and other derivatives to existing account holders.

According to an article published on Binance BlogIn Hong Kong, existing users have three months (90 days) to close their positions on cryptocurrency futures, options and tokens traded on the leveraged and margin products offered by the platform.

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Binance will be the first major crypto platform to reduce access to crypto derivatives trading in Hong Kong.

Why did Binance make this decision?

The action taken by Binance is included in its current policy through which it wants full and strong compliance with regulations and laws.

The Hong Kong regulator, the local Securities and Futures Commission, announced that Binance Group does not have a license to conduct any regulated activity in Hong Kong.

Earlier, as we mentioned in Arab Bitcoin, Binance will shut down access to digital derivatives trading in European countries including Germany, Italy and the Netherlands, for the same regulatory reasons.

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