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Binance CEO Changpeng Zhao said the cryptocurrency exchange takes a proactive approach to regulatory compliance.
Zhao States in one Tweeter that Binance is “pivoting” after weeks of multiple regulatory setbacks around the world.
“Binance is moving from reactive compliance to proactive compliance. Stay tuned.”
Binance CEO further said that “one of many” steps the cryptocurrency exchange will take as part of its “proactive compliance” prohibits users in Hong Kong from opening new derivatives accounts.
“New Binance users from Hong Kong can no longer open term accounts and we will phase out access for existing users. This is one of the many proactive steps Binance is taking to help establish crypto compliance best practices around the world.
Hong Kong users will have a 90-day grace period to exit their existing futures positions. Binance will not allow new positions to be opened during the grace period.
In the past two weeks, the cryptocurrency exchange has pulled out various products and changed operating practices that may incur the wrath of regulators.
For example, Binance lowered the maximum amount of Bitcoin that users who have only undergone a basic Knowledge of Customer verification procedure can withdraw. The cryptocurrency exchange has also limited the amount of leverage offered to a maximum of 20x while stopping the use of certain fiat currency pairs in margin trading.
Zhao’s announcement follows a series of regulatory setbacks, including the loss of payment services provided by traditional financial institutions. Early last month, amid regulatory pressures, Binance announced that it would be expanding its compliance team.
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Featured Image: Shutterstock / Mopic
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