Stepping up efforts to minimize the inherent risks of trading cryptocurrency, major crypto exchange Binance has announced information technology would restrict access to derivatives products to Hong Kong users. The official announcement reads:

"Users from Hong Kong volition have a xc days' grace period to close their open positions. During the grace period, no new positions may be opened."

However, Binance's proactive means to restrict Hong Kong users was non supported by a date of when the restrictions will be imposed. To provide clarity behind Binance'south latest restrictions, CEO Changpeng Zhao said the motility is aimed to be a "proactive measure out" for establishing "crypto compliance best practices worldwide."

Zhao also summarized Hong Kong-related developments, stating:

"New Binance users from Hong Kong can no longer open up futures accounts and we will wind-down access for existing users."

While Binance'southward proactive ban on Hong Kong users may tend to protect new users, the evolution seems to be more in line with China's increased crackdown on crypto concern with no exception on exchanges, mining or token offerings.

Related: Binance to close downwardly crypto derivatives trading in Europe

Binance continues to face regulatory challenges beyond multiple countries for allegedly offering a platform for illegal trades. In an try to keep doors open up for business, Binance is reportedly on a quest to stop offering high-gamble services. Equally of the latest, the crypto exchange appear the suspension of derivatives trading in Europe, starting with Germany, Italian republic and the Netherlands.

As Cointelegraph reported, the move signaled Binance's proactive steps toward harmonizing crypto regulations. Even so, the Securities Commission Malaysia asked Binance to shut operations within its region completely. Binance was reportedly operating within the Malaysian jurisdiction despite no authorization from the regime.

Calculation to the mix, Germany's financial watchdog, the Federal Financial Supervisory Authority, aka BaFin, has also warned Binance of facing heavy fines on the grounds of selling shares in Deutschland in the course of "share tokens" without offering the necessary prospectuses.