Binance to lower futures trading leverage limit to 20 times for existing users

Markets • July 25, 2021, 11:42PM EDT
Akio Kon/Bloomberg via Getty Images

Crypto exchange Binance is poised to lower down the futures trading leverage limit for existing users.

Binance co-founder and CEO Changpeng Zhao said in a tweet on Sunday that Binance futures has already started "limiting new users to max 20x leverage" since July 19.

"In the interest of Consumer Protection, we will apply this to existing users progressively over the next few weeks," Zhao added.

The move came just about two months after Binance announced the support for BTC/USDT contracts for up to 125x margin.

Over the past two months, Binance has faced regulatory headwind in multiple jurisdictions, including the U.S., Canada, the U.K., the Cayman Islands, Italy, Poland, Japan, Hong Kong, Thailand, and Singapore.

Hong Kong-based crypto exchange FTX has also enforced a similar policy, reducing the maximum leverage from previously 101 times to now 20 times.

Sam Bankman-Fried, FTX founder and CEO said the high-leverage trading only made up a small amount of FTX's trading volumes.

AUTHOR

Wolfie Zhao profile picture Wolfie Zhao

Wolfie joined The Block’s news team in 2020 and switched to the research side in 2021 to focus on crypto mining analysis. Prior to The Block, he had been a journalist at CoinDesk for three years. Wolfie has a background in financial journalism.

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