Two of the leading cryptocurrency derivative trading platforms – Binance Futures and FTX – are reducing the maximum allowed leverage on their platforms.
- Ran by Sam Bankman-Fried, FTX is one of the leading cryptocurrency derivatives trading platform, offering high leverage of up to 100x to its customers.
- This, however, will no longer be the case as the exchange plans on trimming it down to 20x, citing consumer protection concerns.
- Speaking on the matter, SBF actually revealed that the average leverage that users are currently taking advantage of is 2x. Hence, the move will only “hit a tiny fraction of activity on the platform.”
- Quickly after that, Changpeng Zhao, CEO at Binance – the world’s leading cryptocurrency exchange, announced similar doings for their derivatives arm – Binance Futures.
Binance Futures started limited new users to max 20x leverage last Monday, July 19th – 7 days ago. (We didn’t want to make this a thingy).
In the interest of Consumer Protection, we will apply this to existing users progressively over the next few weeks.
Stay SAFU
- Both moves come at a time when global financial regulators are taking measurable actions to interfere in the industry and somewhat put it under existing regulatory standards in traditional finance.