{"id":46664,"date":"2021-07-26T11:48:34","date_gmt":"2021-07-26T08:48:34","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=46664"},"modified":"2025-09-01T17:35:19","modified_gmt":"2025-09-01T14:35:19","slug":"binance-cuts-leverage-on-futures-platform","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/binance-cuts-leverage-on-futures-platform\/","title":{"rendered":"Binance cuts leverage on futures platform"},"content":{"rendered":"<p>On July 19, the crypto-derivatives platform Binance Futures lowered the maximum leverage for new clients to 20x, according to the exchange&#8217;s CEO, Changpeng Zhao.<\/p>\n<p><!--more--><\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">.<a href=\"https:\/\/twitter.com\/binance?ref_src=twsrc%5Etfw\">@binance<\/a> futures started limiting new users to max 20x leverage last Monday, Jul 19th, 7 days ago. (We didn&#8217;t want to make this a thingy).<\/p>\n<p>In the interest of Consumer Protection, we will apply this to existing users progressively over the next few weeks.<\/p>\n<p>Stay <a href=\"https:\/\/twitter.com\/hashtag\/SAFU?src=hash&#038;ref_src=twsrc%5Etfw\">#SAFU<\/a>. \ud83d\ude4f<\/p>\n<p>\u2014 CZ \ud83d\udd36 Binance (@cz_binance) <a href=\"https:\/\/twitter.com\/cz_binance\/status\/1419470491337723909?ref_src=twsrc%5Etfw\">July 26, 2021<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;In the interests of protecting customers, we will gradually apply this to existing users over the next few weeks,&#8221; Zhao wrote.<\/p>\n<\/blockquote>\n<p>Earlier, <a href=\"https:\/\/u1f987.com\/en\/news\/ftx-cuts-maximum-leverage-to-20x\">reduction of maximum leverage to 20x<\/a> was reported by the crypto-derivatives exchange FTX. Prior to that, the company repurchased Binance shares. Its founder Sam Bankman-Fried <a href=\"https:\/\/u1f987.com\/en\/news\/ftx-chief-explains-divorce-from-binance-as-a-difference-in-business-approach\"> explained <\/a> this move as a difference in management styles.<\/p>\n<p>In 2019, Binance Futures increased the maximum user-available leverage from 20x to 125x. Zhao called this decision a response to demand from institutional investors.<\/p>\n<p>In the same year, Binance raised the leverage for Ethereum futures to 75x.<\/p>\n<p>In June 2021, the UK&#8217;s Financial Conduct Authority <a href=\"https:\/\/u1f987.com\/en\/news\/uk-regulator-bans-binance-from-operating-in-the-country\"> prohibited Binance Markets Limited<\/a> from any regulated activity in the country without prior written approval.<\/p>\n<p><a href=\"https:\/\/u1f987.com\/en\/news\/cayman-islands-regulator-launches-probe-into-binance\">Cayman Islands<\/a> began a probe into Binance&#8217;s operations, <a href=\"https:\/\/u1f987.com\/en\/news\/thailand-accuses-binance-of-operating-without-a-license\">Thailand<\/a> and <a href=\"https:\/\/u1f987.com\/en\/news\/hong-kong-regulator-warns-binance-group-entities-are-operating-without-a-licence\">Hong Kong<\/a> accused the company of operating without a license, <a href=\"https:\/\/u1f987.com\/en\/news\/japanese-regulator-issues-another-warning-to-binance\">Japan<\/a> issued another warning.<\/p>\n<p><a href=\"https:\/\/u1f987.com\/en\/news\/polish-regulator-urges-caution-in-using-binance-services\">Polish regulators<\/a> warned consumers about the risks of dealing with the platform, and <a href=\"https:\/\/u1f987.com\/en\/news\/italy-and-malta-warn-consumers-about-unregulated-binance-activity\">Italy and Malta<\/a> \u2014 about Binance&#8217;s unregulated activities.<\/p>\n<p>Against regulatory pressure, Zhao published an open letter in which <a href=\"https:\/\/u1f987.com\/en\/news\/changpeng-zhao-outlines-binances-push-to-protect-customers-and-ensure-compliance\">outlined Binance&#8217;s plans to ensure regulatory compliance and customer protection<\/a>.<\/p>\n<p>Follow ForkLog news on <a href=\"https:\/\/twitter.com\/ForkLog\" target=\"_blank\" rel=\"nofollow noopener\">Twitter<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On July 19, Binance Futures lowered the maximum leverage for new clients to 20x, according to the platform&#8217;s CEO, Changpeng Zhao.<\/p>\n","protected":false},"author":1,"featured_media":46665,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[744,1166,1776],"class_list":["post-46664","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-binance","tag-centralized-exchanges-cex","tag-leverage"],"aioseo_notices":[],"amp_enabled":true,"views":"22","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/46664","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=46664"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/46664\/revisions"}],"predecessor-version":[{"id":46666,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/46664\/revisions\/46666"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/46665"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=46664"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=46664"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=46664"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}