Binance CEO Changpeng Zhao says the cryptocurrency trade is taking a proactive strategy in the direction of regulatory compliance.
Zhao states in a tweet that Binance is ‘pivoting’ after weeks of dealing with a number of regulatory setbacks throughout the globe.
“Binance pivoting from reactive compliance to proactive compliance. Stay tuned.”
The Binance CEO additional says that ‘one among many’ steps the cryptocurrency trade will undertake because it embraces ‘proactive compliance’ is banning Hong Kong customers from opening new derivatives merchandise accounts.
“New Binance customers from Hong Kong can now not open futures accounts and we are going to wind-down entry for current customers. This is one among many proactive measures Binance is taking to assist set up crypto compliance greatest practices worldwide.”
Hong Kong customers may have a grace period of 90 days inside which to exit current futures positions. Binance won’t allow new positions to be opened through the grace interval.
Over the previous couple of weeks, the cryptocurrency trade has withdrawn numerous merchandise and altered working practices that would entice the ire of regulators.
For occasion, Binance lowered the utmost quantity of Bitcoin that customers who’ve solely undergone a fundamental know-your-customer verification process can withdraw. The cryptocurrency trade additionally restricted the quantity of leverage provided to a most of 20x whereas stopping the usage of choose fiat currency pairs in margin buying and selling.
Zhao’s announcement follows a string of regulations-related setbacks, together with losing cost companies offered by conventional monetary establishments. Early final month, amid the regulatory pressures, Binance introduced it could be expanding its compliance staff.
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