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Binance halts crypto derivative services in South Africa

Cryptopolitan


TL;DR Breakdown

  • In a recent announcement, Binance decided to put a halt to crypto derivatives services in South Africa.
  • The exchange cited local regulation issues as the reason for this sudden announcement.

Binance has seen a lot of regulation pressure lately. With this year’s crypto explosion, a lot of regulatory issues burdened the exchange. The world’s biggest exchange said that it would cease to offer crypto derivatives services in South Africa in a recent announcement. 

The major reason behind this sudden termination of crypto derivatives in South Africa was due to the regulatory pressure from monetary authorities. Binance further added that this decision was taken to comply with the new regulations introduced by the local authorities. 

Binance users given 90 days to close positions

With this recent announcement by Binance, crypto derivatives features like Futures trading, Margin trading, or even leveraged tokens are all banned. In their statement, Binance further stated that all the users who are involved in the crypto derivatives trading would have only 90 days to close their open positions. 

The crypto exchange notified that existing users would have 90 days to close their open positions but won’t put any new positions. To secure their positions, users will be able to top-up margin balances in the 90-day period. This will prevent them from unnecessary liquidations or margin calls. 

“Users will no longer be able to manually reduce or close their positions after 6th January 2022 11:59 PM (UTC). Thereafter all remaining open positions will be closed.”

Regulatory pressure on Binance keeps on increasing

We have recently noticed that the regulatory pressure on the world’s biggest crypto exchange has been increasing all around the world. But, the CEO of the platform claims that this is a rather positive scenario. 

Earlier this year, we saw crypto derivatives trading being shut off in Europe, Hong Kong, and Australia as well.  

Binance had earlier also closed off its stock tokens feature, and now, with this rising regulatory pressure, it seems that the top exchange is in a bit of a tough spot. 

The CEO of the exchange, Changpeng Zhao, has decided to build headquarters in Ireland as the regulatory pressure keeps on increasing. 





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