Crypto exchange Binance no longer allows Hong Kong residents to access its derivatives platform. According to the message shared by the platform:
"Users from Hong Kong will not be able to open new derivatives products accounts. Also, with effect from a date to be announced in a later notice, users from Hong Kong will have a 90 days’ grace period to close their open positions. During the grace period, no new positions may be opened. 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."
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Binance has also noted that it will be "the first major cryptocurrency and digital assets exchange to proactively restrict access to derivatives products to Hong Kong users:"
"Our aim is to create a sustainable ecosystem around blockchain technology and digital assets, and we hope that such efforts will help the industry grow in the local market in the long-run."
The company has recently announced it will stop offering futures for European users, starting in Germany, Italy and the Netherlands.
In May it was known Hong Kong's Financial Services Bureau plans to force all crypto exchanges to obtain a license and allow access to trading only to professional investors. Until now, platforms could register with the Hong Kong Securities and Futures Commission at their own discretion.
In addition, the operators of illegal crypto exchanges can be punished with a fine of HK$5 million ($644,000) and a prison sentence of up to seven years. Binance CEO Changpeng Zhao said today:
"Binance is pivoting from reactive compliance to proactive compliance. Stay tuned."