The leading daily trading volume, the Binance cryptocurrency exchange, can provide retail investors with tools for margin trading. So far, the initiative is at an early stage of development, reports The Block , citing informed sources.
As the newspaper notes, in Binance they discuss a scenario in which traders will have to hold a steak in Binance Coin (BNB) in order to trade with leverage.
Many market observers are convinced that the launch of margin trading for retail investors is associated with high regulatory risks, since regulatory authorities in different countries may see this as a threat. Especially if users begin to lose significant funds and send complaints to government agencies.
At the same time, according to the publication, Binance engaged the practice of regulatory arbitration, moving from one jurisdiction to another to circumvent various barriers.
It can be assumed that the new product will increase the gap between Binance, which has already established control over a significant market share, and other trading platforms.
Recall that in early February, the Krakow Bitcoin Exchange acquired a platform for cryptocurrency derivatives trading Crypto Facilities, after which the trading volume on the latter grew by 500%.
In the meantime, Japan intends to oblige the stock exchange to limit the size of the leverage for margin trading in cryptocurrencies to x4.
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