Binance announced a similar decision following the FTX exchange limiting the leverage for traders by five times. The rule applies to new customers, later the restriction is gradually removed.
The fact that the site will limit the leverage for new users became known back on July 19, and now the CEO of Binance Changpeng Zhao announced such a limitation for existing users.
According to the CEO of Binance, he would not want to “blow the elephant out of a fly.” The restrictions will be introduced over the “next few weeks”.
We encourage our users to trade responsibly.
Learn more https://t.co/qZcqdYCvou https://t.co/po9tPm11Hy
– Binance (@binance) July 26, 2021
At the same time, the Binance Futures page notes that restrictions are introduced for accounts not older than 30 days. After reaching this period, “restrictions will be gradually removed.”
The Binance Futures platform launched in 2019 and originally offered the same 20x leverage. Subsequently, the leverage was increased to 125x.
As the CEO of the FTX cryptocurrency exchange, Sam Bankman-Fried, said earlier, a small number of clients use high leverage in margin trading. The average leverage on the court does not exceed 2x.
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