Binance, one of the platforms for the exchange of cryptocurrencies The world’s largest companies, it said it would restrict Hong Kong users from trading derivative products, the latest in a series of changes it has made to improve compliance standards.
Users will not be able to open new derivatives accounts with immediate effect, and Hong Kong users will have to close their existing positions as of a date to be announced, the statement said, adding that this was “in line with our commitment to compliance”.
Regulators in Hong Kong, as well as Britain, Germany, Japan, and Italy have increased pressure on Binance in recent months, concerned about consumer protection and the standard of anti-money laundering controls on crypto exchanges in general.
Last month, the exchange’s Chief Executive Officer Zhao Changpeng said that he wanted to improve relations with regulators and that Binance would seek to establish a regional headquarters, breaking away from its decentralized structure.
Binance also said last month that it would shut down its futures and derivatives business in Germany, Italy, and the Netherlands.