Jul 27, 2021 12:03:00

Binance and FTX, the two top exchanges in the industry, announce that the maximum ratio of leveraged trading of crypto assets will be reduced to 20 times

The world's largest crypto asset exchange 'Binance' and the world's second largest 'FTX' were characterized by being able to

perform high-magnification leveraged transactions exceeding 100 times. In July 2021, both companies announced that they would reduce the maximum leverage trading ratio to 20 times.

Binance Margin to Delist AUD, EUR & GBP Pairs | Binance Support
https://www.binance.com/en/support/announcement/0bb891ff23a1463b95851f76a1ad329f

Binance, FTX slash crypto leverage after NYT report on margin trading
https://protos.com/crypto-leverage-binance-ftx-margin-trading-nyt-report/

There are several ways to trade crypto assets. Leverage trading is a form of trading that allows you to trade many times the amount of margin with the margin deposited in your account as collateral. The maximum trading ratio for this leveraged transaction differs depending on the cryptocurrency exchange, and it was possible to leverage at a high ratio of 125 times for Binance and 101 times for FTX.

However, on July 25, 2021 Japan time, FTX CEO Sam Bankman-Fried told his Twitter account that 'margin trading is essential for an efficient economic system, but everything has its limits.' I posted a series of tweets about leverage trading starting with the tweet.

1) An effective margin system is integral to an efficient economic system.

There are limits to everything, though.

— SBF (@SBF_Alameda) July 25, 2021

In a series of tweets, Mr. Bankman Fried said that many cryptocurrency exchanges are conducting high-magnification leverage transactions of over 20 times and there is active discussion about high-magnification leverage transactions. Mention that. 'We are taking the first step. Today, we will remove high-magnification leveraged trading from FTX. The maximum Magnification is limited to 20x,' he said, increasing the Magnification of leveraged trading on FTX to 20x. Announced to reduce.

9) And so, after lots of back and forth, we're going to be the ones to take the first step here: a step in the direction the industry is headed, and has been headed for a while.

Today, we're removing high leverage from FTX. The greatest allowable will be 20x.

— SBF (@SBF_Alameda) July 25, 2021

In addition, after a series of tweets by Mr. bank Man Freed, of Binance jjambbong-Zhao CEO has its own Twitter account 'Binance in have reduced the maximum magnification of the new users of leverage transactions in a 20-fold from 2021 July 19 'The reduction in the maximum ratio will be applied to existing users within the next few weeks,' said Binance, which appealed that it is implementing a plan to reduce the maximum ratio of leveraged transactions to 20 times, similar to FTX. I am.

@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

In addition, Binance announced the suspension of margin trading using Australian dollars, euros and pounds on July 26, 2021 local time. Cryptocurrency media Protos said, 'Regulators around the world are increasing their scrutiny of crypto exchanges. In particular, Binance has warned from regulators in the UK, Cayman Islands, Malta and Japan in the coming weeks. We have received it, 'he said, pointing out that the reason FTX and Binance have lowered their leveraged trading caps one after another is to circumvent restrictions from the authorities.