Binance CEO Changpeng Zhao announced that leverage on Binance will be limited for existing users with registered futures accounts of less than 30 days.
Leverage limits will increase one month from registration
Binance had already introduced a 20x leverage limit for new users on July 19, but Binance Futures is now preparing to apply the same limitation to existing users.
As of last Monday, new users with registered Binance Futures accounts of less than 30 days are prohibited from opening positions with leverage greater than 20x. The new leverage limits also apply to existing users with registered futures accounts of less than 30 days. Binance’s Leverage Trading page states that. “Leverage limits for new users will gradually increase only after one month from registration”.
The latest move of Binance is very similar to what FTX announced last Sunday. The CEO of FTX, Sam Bankman Fried, tweeted that FTX plans to remove high leverage above 20x on its platform because it wants to encourage responsible trading. Before the announcement, traders were able to use up to 100x leverage on the trading platform.
Binance will remove several cross and isolated margin trading pairs
Binance also announced that it plans to delist AUD, EUR, and GBP cross and isolated margin pairs on Monday. The exchange will remove the first trading pairs on August 10 and delist another half on August 12. You can find a complete list of the trading pairs affected by the announcement on their website.
The decision to delist margin trading pairs for AUD, EUR and GBP could have been a response to the regulatory pressure in Europe, UK, and Australia. The exchange also added a warning at the end of the announcement, claiming margin trading is a risky affair that could lead to significant profits and losses.