Binance made an important announcement on Monday. The world’s largest cryptocurrency exchange would stop offering cryptocurrency margin trading involving euro, sterling, and the Australian dollar. The company’s decision to limit its services comes as a string of regulators across the globe issued warnings about the platform and some of the services it offers.
It will suspend margin trading for Ethereum, Bitcoin, and other large cryptocurrencies and the Australian dollar, euro and sterling pairs. The company will cancel all pending orders, automatically settle any open trade and delist the pairs on August 12.
The platform’s chief executive, Changpeng Zhao also made a comment on Sunday. He mentioned that Binance was limiting the maximum leverage for trading cryptocurrency futures for new users 20 times the money a customer puts up from 100.
That came after another crypto exchange FTX also cut down leverage 20 times to limit speculative trading with cryptocurrencies.
Binance and regulators
Authorities in several countries raised concerns about Binance for carrying out unauthorized financial services. One of them is Japan’s Financial Services Agency. It stated that the Binance was operating in Japan without its permission.
The U.K.’s Financial Conduct Authority (FCA) also issued a warning regarding the main cryptocurrency exchange. The regulator does not regulate cryptocurrencies, nonetheless, the FCA requires exchanges to register with them.
The FCA ruled that the company can not conduct any regulated activity in the U.K. The U.K.’s financial regulator also advised people to be wary of products promising high returns on crypto asset investments.
It was set to launch its own digital asset marketplace in the country. Nonetheless, Binance was one of several cryptocurrency companies that withdrew applications to register with the FCA. The company was unable to meet anti-money laundering requirements, so it decided to register with the regulator.
COMMENTS