• Binance has put a halt to its margin trading with the Australian dollar, euro, and pound sterling

  • Binance, the world’s largest cryptocurrency exchange, has announced that it would no longer provide cryptocurrency margin trading in Australian dollars, euros, or pounds.

    From August 10, Binance will stop offering margin loans for big cryptocurrencies and their Australian dollar, euro, and sterling counterparts. By August 12, the platform will have delisted the pairings, canceled all pending orders, and settled all open trades automatically.

    The platform’s CEO, Changpeng Zhao (CZ), also announced in a tweet on Sunday that new users’ maximum leverage for trading bitcoin futures will be limited to 20 times. The exchange’s service restrictions come as regulators throughout the world have issued warnings about the platform.

    Tokens of stock

    Binance’s latest regulatory issues can be traced back to when it introduced equity tokens in April. Starting with Tesla, these so-called “tokenized equities” might be valued as a fraction of the underlying shares and held in reserve. The German financial regulator BaFin, on the other hand, was disturbed by these offerings.

    These stock tokens, according to the regulator, could be regarded as securities, necessitating the issuance of a prospectus. Binance recently declared that it would stop offering its equity tokens immediately as a result of the attention that followed this initial investigation. Current holders would have 90 days until their positions were closed off.

    Warnings have been issued.

    Although Binance’s original offering was stock tokens, this garnered further attention from regulators. In June, the Financial Conduct Authority (FCA) of the United Kingdom issued a consumer warning against Binance. It also prohibited Binance from engaging in any regulated activity in the United Kingdom. Similar warnings from banking authorities in Japan, Canada, Thailand, Italy, Lithuania, and Hong Kong followed quickly.

    Meanwhile, on the bright side for the company, CZ hinted at a possible initial public offering (IPO) for his firm. The CEO of Binance U.S. announced during this year’s Global DeFi Virtual Summit, presented by SCB 10X, that “Binance U.S. is exploring at IPO route.” He did highlight, however, that there was currently no direct plan in place and that the company’s primary focus was on expansion.

    What's your reaction?
    Happy0
    Lol0
    Wow0
    Wtf0
    Sad0
    Angry0
    Rip0