Binance Lowers Withdrawal Limit And Leverage Due To Regulators
The largest cryptocurrency exchange Binance continues its work, but destructive measures from global regulators are making themselves felt. Today, the platform lowered the withdrawal limit from 2 BTC to 0.06 BTC and followed the example of the FTX exchange in reducing its leverage from 100x to 20x.
The head of FTX, Sam Bankman-Fried, announced his decision to change the maximum available leverage for trading futures contracts last Sunday, and a day later Binance added an identical innovation. In addition, in an attempt to avoid unnecessary problems in the growing wave of conflicts with international regulators, the management of the crypto exchange decided to significantly reduce the limit on withdrawals from 2 to 0.06 bitcoins.
Active participants of the exchange will not feel the changes in the withdrawal limit immediately, but in stages from 8 to 23 August. At the same time, if the client successfully passes the KYC check, his withdrawal limit will be increased to 100 BTC.
In addition to the restrictions, Changpeng Zhao decided to add "positive" to the crypto community, saying that the company is ready to consider candidates for the position of CEO of Binance. Many participants were shocked by this announcement, but Zhao was quick to reassure them, assuring that the company does not plan to replace the CEO urgently, but they sincerely hope to find a worthy candidate with extensive experience in compliance. With this move, the exchange wants to demonstrate that its top priority today is commitment to regulatory compliance.
In addition, according to the head of Binance, the CEO should not "sit up" in his post for more than 10 years. He called the “life cycle” of 5 years as the optimal management period for the company. Otherwise, the dynamics of the organization will quickly be disrupted. After these words, Zhao once again stressed that he did not intend to leave the exchange, and in order to actively participate in its fate, he did not need to remain in the position of manager.
Recall that earlier, Binance was subjected to a number of severe restrictions and almost obvious threats to the further conduct of its business from regulators of various jurisdictions, including the UK, Japan, Singapore, Thailand, Malta and the Cayman Islands.
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