This last month has not been an easy one for crypto derivatives traders. This is because Binance, one of the largest crypto exchanges, announced that it would no longer offer derivative trading to its users in Hong Kong. This came after similar services were suspended in European countries like Germany, Italy, and the Netherlands.
According to Changpeng Zhao, the CEO of Binance, the reason for this decision is because the exchange is “pivoting from reactive compliance to proactive compliance.” Regulators worldwide have come down hard on crypto trading platforms, which has left crypto derivative traders to worry about where they can trade crypto derivatives.
The New Home of Crypto Derivatives
While members of the crypto community might feel some apprehension about the current regulatory landscape, some cryptocurrency brokers are expanding their offering to meet the needs of retail clients. Eightcap, an award-winning CFD broker, announced on August 6, 2021, that it would be launching over 250 crypto derivatives.