Tuesday, 27 July 2021

Binance to Delist Margin Trading for GBP, EUR, and AUD

Binance, one of the largest cryptocurrency exchanges by trading volume, declared delisting margin trading for AUD (Australian Dollar), EUR (Euro), and GBP (Sterling Pound) pairs. The exchange platform plans to suspend these fiat pairs on 10 August, switch to the automatic settlement before canceling any pending order, and finally delist them by 12 August. That is according to an official statement from the crypto company.

The exchange's move to delist these pairs might be due to regulatory concerns. Keep in mind that Binance received monitoring backlash in Australia, the UK, and Europe.

While concluding the announcement, the exchange warned that margin trading is a high risk, leading to either massive losses or profits. Moreover, it declared that past results never detect future returns. Traders might have their entire margin balance liquidated in cases of thrilling price movements.

Remember, Binance has experienced regulatory backlash from ten countries since last month. The regulators seem concerned about two things about Binance's undertakings: high leverage trading and the absence of headquarters. Binance has the highest leverage on trading pairs, some with 125X.

Binance Mends Regulatory Risks

Binance is known as a leader in derivatives and spot trading. The high leverages have attracted traders, challenging regulators due to the high related risks.

Multiple nations have already banned leverages on crypto trading as many more plans to join the move.

After the increasing regulatory issues, Changpeng Zhao, Binance CEO, stated that their platform would limit leverage trading at 20X for newbies while existing users can enjoy higher leverages.

Other Market News

Amazon seems to have a rising interest in cryptocurrency products, hiring blockchain and crypto experts. The eCommerce platform seeks a professional product dealer to improve Amazon's Blockchain and Digital Currency strategy and project roadmap.

Amazon plans to venture into the crypto market, adding BTC payments in some time to come. The news saw Bitcoin attaining new highs early on Monday. For now, investors remain optimistic as the leading coin rallies to test the levels near $40,000. As a result, most digital coins have uptick with substantial gains since yesterday.

Keep in mind that Elon Musk announced accepting Bitcoin payments in the future.

Will the move by Binance strengthen the platform's trust? Comment below.