Binance UK Restricting Access to Crypto Derivatives and its Earn Product
Binance’s UK entity will stop offering its retail investors crypto derivatives to comply with local regulations, the exchange told its users.
“As the crypto ecosystem evolves globally, we are continually evaluating our products to ensure they meet local regulatory requirements,” reads the note Binance UK sent to the users.
The UK Financial Conduct Authority (FCA) banned selling derivatives and exchange-traded notes (ETN) related to crypto-assets last year, which came into effect in January this year.
Back in June, FCA also said Binance isn’t allowed to conduct any regulated activity in the region, following which the exchange started working on getting approval. It also began to hire a former regulator or government official in the UK to bolster its efforts to get registered with the FCA.
Additional Info Required
Now, the exchange told its customers that it would require “additional information” from its users before it can allow them to continue accessing certain products, which include futures, margin, leveraged tokens, options, and Binance Earn.
Binance didn’t mention just what kind of information it is requesting from its users. One user took to Twitter to share that he was only asked one question if he is a “private investor,” and on confirming this, his access to the products was immediately restricted. He advised others not to complete the form before the deadline or risk getting their access limited immediately.
This applies to those users who registered with Binance before December 14th. The information is collected in a pop-up form when users next access the products on the website.
Binance says this information will help them determine whether a user’s access to these products is permitted under local regulatory requirements or will be restricted.
Users have to provide this information by February 14th, 2022, after which these products will be automatically restricted. Also, after the deadline, users will only be able to reduce, close, or redeem their positions or top-up margin balance to prevent margin calls and liquidations. Other products would remain unaffected.
Complying With Local Policies
While Binance is busy complying with the UK regulations, crypto exchange Huobi is still removing the Chinese mainland users from its platform.
The exchange issued a notice of removal of existing Mainland China user accounts for spot and fiat trading. Withdrawal services, however, will be kept open for 1-2 years, and its closing time will be announced at a later date.
Starting December 15th, Huobi Global is ceasing all spot trading services for China users in compliance with local policies. Meanwhile, all digital assets transactions for all users involving CNY will be disabled on December 31st.