Binance to Stop Offering Margin Trading with GBP, EUR and AUD
Binance is aggressively minimizing offering some risky crypto trading services. The exchange announced on Monday that it will stop offering crypto margin trading with the pound sterling, euro, and Australian dollar. Further, it will reduce the maximum leverage limits for futures trading from 125x to 20x.
The crypto exchange giant will suspend borrowing on dozens of pairs of the three fiats on August 10. It will conduct an automatic settlement and cancel all pending orders on August 12 and then finally delist all these pairs.
“Margin trading carries a substantial risk and the possibility of both significant profits and losses. Past gains are not indicative of future returns. All of your margin balance may be liquidated in the event of extreme price movement,” Binance stated in its risk warning.
Binance launches margin trading in July 2019, along with its futures trading features. Notably, it is strongly holding the position of the largest crypto derivatives exchange in terms of daily trading volumes.
End of High Leverage?
Binance’s confirmation of the new limits in leverage came only a day after rival FTX announced a similar reduction of leverage from 101x to 20x.
In a tweet on Sunday, Binance CEO Changpeng Zhao confirmed that his exchange is putting the new limitation on futures leverages to new users from July 19 and is now extending the same for existing traders.
“In the interest of Consumer Protection, we will apply this to existing users progressively over the next few weeks,” Zhao noted.
The suspension of the margin pairs along with the limits on leverage came after the exchange faced several regulatory warnings or actions. The exchange has been flagged for illegal operations in some jurisdictions, while others raised the alarm for offering particular services like derivatives trading and stock tokens.
Binance also dropped stock tokens from its services recently that shows the exchange’s eagerness to make peace with regulators.
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