Cryptocurrency exchange Binance is limiting leverage for new traders and is preparing to apply the same conditions to existing ones. As Binance CEO, Changpeng Zhao, wrote on Twitter, new users' positions on Binance Futures cannot exceed 20 times their own funds starting July 19.
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The Binance CEO added that the decision was made in the interest of consumer protection.
"We did not want to make this a thingy," Zhao wrote on Twitter, a week after Binance made change.
In May, Binance raised the leverage limit for BTC/USDT contracts up to 125x. Back then, Zhao said the decision was made due to the increased participation of institutional traders looking for more ways to trade in terms of both cost and performance.
Shortly after, Binance drew scrutiny from regulators around the world over unauthorized activity of affiliated companies. As of press time, watchdogs of the United Kingdom, Hong Kong, Poland, Malta, Italy, Cayman Islands and Singapore issued warnings against the exchange and affiliated companies.
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