The Hong Kong SFC has notified the Binance Group that there are no licenses in its jurisdiction. The exchange closed access to the Binance Futures derivatives platform for Hong Kong residents.
China and Hong Kong’s national security laws introduced last year have prompted many multinational companies to reconsider their commitments to Chinese territory.
Binance CEO Changpeng Zhao commented in an open letter that the close attention of regulators means the maturation of the crypto industry. He admitted that the Binance team “doesn’t always get things right.” A proactive approach to regulatory compliance will avoid Binance’s regulatory criticism and negative press coverage.
Changpeng Zhao said on the platform’s website that the exchange is imposing restrictions on Hong Kong residents in accordance with the requirements of the regulator:
“Hong Kong users will not be able to open new derivatives accounts (including futures, options, margin products and leveraged tokens). In addition, Hong Kong users will have a 90-day grace period to close their positions starting from the date to be announced in a later notice. During the grace period, you cannot open new positions. The decision takes effect immediately. ”
Binance will be “the first major cryptocurrency exchange to restrict access to derivatives for Hong Kong users”:
“This is one of many measures Binance is taking to help establish best practices for cryptoasset compliance worldwide,” Zhao tweeted.
New Binance users from Hong Kong can no longer open futures accounts and we will wind-down access for existing users.
This is one of many proactive measures Binance is taking to help establish crypto compliance best practices worldwide.https://t.co/D1JKx52O7T
– CZ Binance (@cz_binance) August 6, 2021
The Securities and Futures Commission (SFC) of Hong Kong has published rules defining a new regulatory framework for virtual asset trading platforms. The SFC will only issue licenses to platform operators that are able to comply with strict regulatory standards. These standards are comparable to those that apply to licensed securities brokers and automated trading platforms. These include additional requirements to address the risks associated with cryptoassets.
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