Recently, some regulators have warned Binance while others have totally banned the exchange. This has led the exchange to restrict its offerings in some countries. On Friday, 8th of October, the management of Binance announced that they would stop some of the exchange’s offerings in South Africa.
In lieu of this, South African Binancians would cease to enjoy four product offerings: futures, options, margins, and leveraged tokens. Hence, they can no longer predict the direction by placing futures trade.
Similar to that, traders won’t be able to borrow capital from other traders during their trades. This is what crypto traders often call Margin. In addition, they won’t be able to leverage trades as well.
While traders have a 90-day ultimatum to close their ongoing trades, all positions will be closed by 6th of January, 2022. Binance also allowed them to top-up margin balances to avoid liquidations.
Having said that, Binance has been restricting its product offerings in several countries. As Coinbench reported over the months, Binance has restricted its offering in South Korea, Singapore, Norway, and Brazil to mention a few.
Concerning the reason for this shutdown, the statement reads that “Binance’s aim is to create a sustainable ecosystem around blockchain technology and digital assets. Binance welcomes developments to our industry’s regulatory framework.”
The CEO Binance said that the recent developments in the exchange are due to regulatory reasons. These developments also appoint new roles and decentralization of headquarters.