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  • 2 Post By makeITcount

Binance stops all derivates trading in Hong Kong

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  1. #1

    Join Date
    May 2018
    Location
    Hong Kong
    Posts
    118

    Binance stops all derivates trading in Hong Kong

    This might not be interesting to those that are trading on Binance but potentially other derivates traders:

    https://www.binance.com/en/support/a...d927bd37ab2b86

    No new futures trading accounts can be opened in Hong Kong and all open positions need to be closed within 90 days:

    https://www.binance.com/en/support/a...d927bd37ab2b86

    they follow FTX footsteps. I find this weather interesting since to my knowledge there has ben apart from the government consultation paper not legislation that forbids derivatives trading.

    If any of you have more information please share.

    Have a nice weekend


  2. #2

    What would happen if they suddenly limit trading to professional investors?
    Will we be able to withdraw our crypto?


  3. #3

    Join Date
    May 2018
    Location
    Hong Kong
    Posts
    118

    I would not worry about that at this point. Even now Binance gives you a 90 day warning to take out all your derivatives trades. Whats more interesting is the fact that this is happening in Hong Kong that prides itself as an open market financial centre. I find this extremely worrysome and don't like the idea of being pushed into a nanny state. Don't get me wrong I am not against KYC and limit novice traders to certain leverage limits. But no trading at all? Does anybody stop you from going to Macao (covid aside) and loose your hard earned money at the casino?


  4. #4

    Why didn't they apply for license?
    https://www.scmp.com/business/bankin...kong-following

    Apparently they are pivoting the company...they say...
    https://www.theblockcrypto.com/post/...g-after-europe

    After reading more news reports, I think this is not a Hong Kong only issue. Germany and Netherlands also ask for more regulations on this matter and Binance also pulled out there.

    For Hong Kong crypto accounts, which ones are not affected and do still take your money?


  5. #5

    Join Date
    May 2018
    Location
    Hong Kong
    Posts
    118

    Hi Petra,
    Binance has a big problem on their hands because of their lack of initiative of realising the regulatory environment that's increasingly hostile toward crypto assets. As the biggest player in the retail space they get the most scrutiny and given their rapid growth they have really missed out on making changes that appease out politicians. If you look for instance at FTX, they implemented a reduction in leverage and Binance followed suit with an announcement, then they enforced more KYC compliant registration and limited non KYC account from withdrawing large amounts of crypto. Now the latest initiative of closing all derivatives trading for new HK registered account and stopping all existing futures accounts within 90 days is also a direct response to the draconian measures that FTX took in response to the HK government consultation paper. Nothing has been written into law but it appears that HK is only allowing "professional traders" to trade crypto derivates. Its a major insult as I pointed out numerous times in previous posts and smells of this nasty collusion between banks and the HK administration. To make a long story short crypto exchanges around the globe will get under more scrutiny as ever. I would not recommend opening an account with Binance anymore but instead find a reputable exchange with more regulatory foresight. FTX seems to be the best in class for non US folks but they made it difficult being based in Hong Kong. I guess if you just hodl Binance is fine but not if you want to trade. If your new I would look at other exchanges as of now. But its not going to get easier. which till begs the questions WTF is happening in HK.? why are they suddenly so keen on regulating Crypto? Maybe the answer lies across our Northern border?