Binance has been facing a lot of issues in many nations all across the globe. And one of the major things they are doing is to stop derivate and future trading. The company announced on Friday that they are going to halt the option in Hong Kong as well. It also said that users would be given 90 days to close off their open positions.
Derivates have faced a lot of slack due to their huge manipulative nature, so it’s actually a good thing that Binance is halting them. The company also plans to reduce leverages on trading due to the same reason.
Binance stops crypto derivate trading
Binance has been trying to adopt a very regulated approach for its operations. This is why it is trying to comply with the laws of every nation. As Binance stops derivate trading in Hong Kong, it shows their willingness to cooperate with the laws of the government. This happened after Binance already halted trading in Italy, Netherlands and Germany due to the same reason. The company announced, “With immediate effect, users from Hong Kong will not be able to open new derivatives products accounts”.
But even after the derivates ban in several nations, Binance is still one of the largest derivate platforms globally. It sees nearly $70-$100 billion every day in trading volume. This shows how big the derivative industry is and the kind of impact it has on the market. But it is probable that with time the derivate industry will shrink with increasing regulation in the market.
What are your thoughts on the fact that Binance stops crypto derivate trading in Hong Kong? And do you think that slowly it will happen in more countries? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Bitcoin will resume its journey towards $100k, suggests analysts