Binance closes down derivatives services for the South African customers as it continues to shut down services in certain regions so let’s read more in our latest Binacne news today.
The Binance users that are in South Africa have until January 6th, 2022, to manually close their derivatives positions as the exchange halted these services. This is the latest action by the world’s leading exchange in the efforts to comply with local regulators. As announced earlier, Binance alerted its South African customers that will stop offering any derivatives services especially those that are trading futures, option, margin, and leveraged tokens. The users in the African nation will not be eligible anymore to open new accounts for these products, effective immediately.
The existing clients have up to 90 days to reduce or close their positions manually. They will be able to top-up margin balances and prevent margin calls and liquidations but they won’t have the option to open new positions or increase their current ones. If the users fail to close their positions, they will be settled automatically. Binance closes down derivatives services for the users amping the efforts to comply with the local regulators. The exchange faced enhanced scrutiny from the watchdogs and had to shut down the services in other countries as well. It also undertook plenty of different actions trying to increase the regulatory compliance team that included the hiring of the new personnel in its AML/KYC departments.
As recently reported, Crypto exchange Binance allows European customers to migrate their tokenized stocks to another company as the platform shut down its tokenized stock services suddenly after several regulators said that the tokens constituted illegal securities offerings. The customers in the European Economic Area and Switzerland are able to migrate their tokenized stocks from Binance to CM-Equity AG which is the German investment company that Binance partnered with to list the tokenized stocks. Customers from other nations like the UK are not able to migrate their tokens to CM-Equity AG and they can sell them on binance until October 14. if the customers don’t sell the tokens or move them to the other platform, Binance will sell the tokens. The tokenized stocks are crypto derivatives that track the value of securities and in the case of Binance, CM-Equity operated as the broker and sold tokenized stocks that it owned to the customers.
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