Binance stops Crypto derivatives offerings in South Africa

The regulation pressure on crypto exchanges has been increasing every day, and Binance is not untouched. After the huge success of the crypto industry this year, several regulatory issues are controlling it. In a recent announcement, the company said that it will stop all crypto derivative offerings in South Africa.

The primary factor behind this sudden ceasing was the regulatory pressure from local monetary authorities. The exchange giant cleared the same by stating that the actions are followed by the introduction of new regulations by local officials.

Binance gives 90 days to users for closing positions

Binance, under this announcement, decided to stop all crypto offerings, including Margin trading and Futures trading. Along with that, it has also banned almost all leveraged tokens. The company has given 90 days to the users who utilize crypto derivatives trading services and are residing in South Africa to close their open positions. No user after January 6, 2022, will be able to close their positions manually.

The exchange further clarified that the users who have 90 days to close their positions are not allowed to open positions. Also, for securing their existing positions, they can top-up margin balance in the given period. The decision is to avoid unnecessary liquidations and margin calls.

Regulatory pressure 

From the start of the year, many regulatory bodies are targeting the platform, resulting in crypto derivatives trading being shut off in Europe, Australia, and Hong Kong.

Binance has also removed the option of stock tokens feature after the increasing regulatory pressure. Many monetary bodies are putting pressure on big crypto exchanges to slow down the growth of the trillion-dollar industry.

Despite the continuous regulatory pressure from worldwide, the company’s CEO, Changpeng Zhao, finds the situation positive.

As the regulatory pressure is not decreasing, the company’s CEO has also decided to start a new headquarters in Ireland.