The world’s largest cryptocurrency exchange, Binance, announced on Monday that it would stop offering cryptocurrency margin trading involving the Australian dollar, euro, and sterling. Binance’s curbs on its services come as a string of regulators across the globe have been issuing warnings about the platform and some of the services it offers. Binance will suspend margin borrowing for bitcoin, ether, and other large cryptocurrencies and their Australian dollar, euro, and sterling pairs from August 10.
Regulators expressed concerns over Binance for carrying out unauthorized financial services.
As reported earlier, financial regulators in Britain, Japan, Italy, and Thailand have all raised concerns about Binance for carrying out unauthorized financial services. After a German watchdog’s warning in April, Binance stopped offering stock tokens to its users earlier this month. Binance CEO Changpeng Zhao also said in a tweet on Sunday that it was limiting the maximum leverage for trading cryptocurrency futures for new users to 20 times the money a user puts up from 100.
Binance stopped its stock token service.
Binance announced earlier this month that it has stopped selling digital tokens linked to shares. Hong Kong’s financial watchdog became the latest in a string of regulators to crack down on the cryptocurrency exchange platform’s “stock tokens” offerings. “Effective immediately, stock tokens are unavailable for purchase on Binance.com,” the exchange announced on its website. Stock tokens are digital versions of equities pegged to the value of the relevant share. Global scrutiny of the cryptocurrency sector has grown amid worries over lax consumer protection and the use of cryptocurrencies for money laundering, with authorities in recent months targeting Binance, one of the world’s leading platforms.