Binance exchange decided to delist EUR, GPB, and AUD fiat pairs. And also limits the trading leverage.
In recent months Binance faced lots of pressure from regulatory authorities of different countries. And probably that is the main reason to take such huge actions to change their existing rules so that they can comply with the regulators rules.
On 26 July, Binance announced to delist EUR, GPB & AUD from the marginal trading accounts. While users will be able to use these three fiat coins in spot trading without any restriction. This announcement of Binance will come into effect from 8 August 02:00AM UTC.
Binance margin account features enable users to take crypto loans Upto 10 times of their original fund but that is risky also because that results in loss when a situation of liquidity will arise. Know more about marginal trading here.
While before this announcement of delisting the fiat coins, they announced to reduce the leverage trading limit. According to 19 July announcement of Binance ” in futures trading leverage will be remain maximum to 20×” . Earlier leaverage limit was 100×.
Binance CEO remind their decision on leaverage trading limit on twitter
“we didn’t want to make this a thingy.”
.@binance futures started limiting new users to max 20x leverage last Monday, Jul 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.
— CZ Binance (@cz_binance) July 26, 2021
Probably the decision of limiting the leverage trading limit is to make futures trading less attractive. Because most of the people get into Futures because of high leverage & high chances of profit.
Already the Securities and Exchange Commission authority warned people regarding Futures Trading. So there are lots of chances that regulators are putting pressure on Binance for such risky schemes.