Binance to stop margin trading with three major currencies

1 year ago 140

The starring cryptocurrency speech announced that it would cease crypto borderline trading with the Australian dollar, euro and lb sterling adjacent month

Binance, the world’s largest crypto speech by volume, yesterday revealed plans to suspend transverse and isolated borderline borrowing for the Australian dollar, the lb sterling and the euro connected 10 August. The announcement elaborate that Binance would execute an automatic colony of immoderate unfastened trades, cancel each pending orders and past delist the transverse and isolated borderline pairs by 12 August.

It appears that Binance is looking to negociate the increasing regulatory enactment that has plagued it implicit the past fewer months. The web posting besides provided a hazard informing that cautioned users of the risks associated with borderline trading, asking them not to trust connected erstwhile gains arsenic an indicator of imaginable returns successful the future.

A fewer hours earlier, Binance’s CEO Changpeng Zhao had posted a tweet notifying users that Binance had started limiting the maximum leverage for trading cryptocurrency futures to 20x for each caller users – down from 100x.

Binance futures started limiting caller users to max 20x leverage past Monday […] In the involvement of Consumer Protection, we volition use this to existing users progressively implicit the adjacent fewer weeks,” the tweet read.

The Cayman Islands-based crypto speech isn’t the lone 1 that has introduced a caller bounds connected maximum leverage. FTX besides precocious chopped leverage limits for borderline trading from 100x to 20x. CEO and Founder Sam Bankman-Fried revealed that with astir users not taking vantage of precocious borderline trading limits, the lowered trading limits would alteration the speech to connection adjacent much liable trading options.

The determination by Binance and FTX to update trading rules connected their respective platforms could beryllium aimed astatine appeasing regulators who person successful caller months ramped up enactment against platforms and firms dealing with crypto.

The erstwhile successful peculiar has been making changes to suit the harsh regulatory environment. Regulators successful Japan, Thailand, the UK and the US person pursued the exchange, enforcing bans and restrictions for unauthorised enactment successful the past fewer weeks.

Binance’s run-ins with the instrumentality started successful April erstwhile the steadfast launched banal tokens, which were past deemed unlawfully offered securities. In response, little than 2 weeks ago, Binance announced that it would halt offering the said banal marketplace tokens.

FTX, connected the different hand, lone precocious announced a monolithic Series B backing circular worthy $900 million. It is plausible that the institution volition effort to destruct oregon clamp down connected the risky trading activities that regulators are acrophobic about.

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