According to the announcement, starting August 8, 2021, traders will not be able to use the Euro (EUR), British Pound (GBP), and Australian Dollar (AUD) for margin trading. All margin trades in the above currencies will be closed on August 12, 2021. As per The Money Mongers report, there are still many crypto margin exchanges that offer leverage on the above mentioned currencies
Why is Binance closing margin trading?
Binance did not clarify what exactly prompted it to abandon these fiat currencies. The delisting time coincided with increased international regulatory pressure on Binance-affiliated entities.
Read also: Coinbase Pro Ends Margin Trading Services Citing Regulatory Concerns
Earlier, Binance also announced that it would end support for tokenized shares. The stock tokens themselves can no longer be bought on the platform, but they can still be sold. Full support for such assets will end on October 14, 2021.
What caused the delisting of tokenized shares also remains unknown. However, at the end of April this year, the German financial regulator BaFin warned investors about possible violations related to tokenized shares on the crypto exchange. The platform closed trading on these assets three months after their launch.
It also became known earlier that Binance had cut the leverage to 20x. According to the head of the cryptocurrency exchange Changpeng Zhao, the decision was made to protect the interests of consumers.
Think we missed something? Let us know in the comment section below.