Binance limits access to British dealers to risky crypto derivatives

Binance has restricted the access of British customers to crypto derivatives after their CEO announced that the stock exchange is planning to renew their official permits for the company in the country.

The crypto exchange, which had come into conflict with the Financial Conduct Authority at the beginning of the year, sent messages to British customers on Tuesday, in which they were asked to provide additional information in order to continue to be able to access derivatives and other functions on the platform.

The FCA has banned the offer of crypto derivatives to private investors this year. But despite the ban on the national wax dogs, global stock exchanges such as Binance were still able to offer offshore websites for customers in Great Britain.

"So that we can comply with the British financial regulations, we ask you..

"This information helps us determine whether your access to [Certain] products is permitted in accordance with the local official requirements or is restricted."

British customers who registered with Binance before December 14 have time to answer questions until mid -February to determine whether they continue to have access to derivatives.

In a copy of the user questionnaire provided by a Bony user, users were asked to indicate whether they are a wealthy, foreign or professional dealer. Demanding dealers can continue to use crypto derivatives according to the British regulations. But the stock exchange said that "most customers" would not fall into any of these categories.

The restrictions on the offer mark the recent concession of Binance after a year of pressure from supervisory authorities in the countries around the world.

The message referred to futures, options and some other lever products as services that could be restricted.

Binance confirmed that the news was sent. "This is a prerequisite for compliance with the local regulations. Binance is committed to complete compliance worldwide," said the group.

derivative products and practice to lend users money to strengthen their business, the focus of several supervisory authorities in terms of binance and other crypto exchanges, since these speculative strategies of private investors can quickly expose difficult losses. They also contribute to volatility on the entire market, say industry leaders.

Changpeng Zhao, CEO of Binance, told the Daily Telegraph in the early this month that the company was planning to apply for the FCA permit again in order to work as a crypto company in Great Britain. In June, the regulatory authority instructed Binance to hire all regulated activities in the country and impose strict requirements in a top -class "consumer warning".

Binance Markets Limited, one of the British subsidiaries of the stock exchange, withdrew their application before warning at the FCA.

The stock exchange has tried to set up cryptooperations in several financial centers, but was pushed back sharply by the supervisory authorities due to questions about the guidelines and procedures of the group to protect consumers. The stock exchange announced on Monday to close its crypto exchange in Singapore and to withdraw its application for regulation in the city-state after the local regulatory authority had cited in September.

crypto investors in many jurisdictions can access the offshore exchange of Binance, which, among other things, offers spot and derivate trade, even if the group is not active in their residence. However, the group founded subsidiaries worldwide to get better access to traditional payment networks.

In July, the stock exchange announced that it "reduced" its lucrative derivative business in Europe, where it was also subjected to an official examination and reduce the amount of money, to borrow the retailer on the platform in order to strengthen their bets.