This last month has not been an easy one for crypto derivatives traders. This is because Binance, one of the largest crypto exchanges, announced that it would no longer offer derivative trading to its users in Hong Kong. This came after similar services were suspended in European countries like Germany, Italy, and the Netherlands.
According to Changpeng Zhao, the CEO of Binance, the reason for this decision is because the exchange is “pivoting from reactive compliance to proactive compliance.” Regulators worldwide have come down hard on crypto trading platforms, which has left crypto derivative traders to worry about where they can trade crypto derivatives.
The New Home of Crypto Derivatives
While members of the crypto community might feel some apprehension about the current regulatory landscape, some cryptocurrency brokers are expanding their offering to meet the needs of retail clients. Eightcap, an award-winning CFD broker, announced on August 6, 2021, that it would be launching over 250 crypto derivatives.
With this announcement, Eightcap now becomes the largest crypto derivatives provider in the industry. Its many features make this offering the first choice for both existing crypto derivative traders who are looking to switch from Binance and similar places, and crypto fanatics who are looking to start making their move on crypto derivatives. Funding the trading account can be done through various payment methods including PayPal, Skrill and credit/debit cards.
Binance users are highly concerned about whether they will be able to withdraw their funds. This is not the case with Eightcap, which has stepped in as the crypto derivative provider where no wallet is needed, making withdrawals simple, efficient and fast for the user. Trust in a derivative broker is necessary for the current crypto market, and Eightcap prides itself on this. This is what makes Eightcap the new home of crypto derivatives trading, even amidst the regulatory anxiety that many users are experiencing.
Speaking on the situation, Joel Murphy, CEO, Eightcap, said, “The regulatory issues crypto exchanges such as Binance are facing means traders are left with unnecessary worries about their funds and if they can withdraw them. With us, Crypto derivative traders can have a seamless experience from the moment they open an account to when they want to withdraw their funds.”
The CFD broker has been proactive in maintaining a good relationship with regulators, and Eightcap is currently regulated by the Australian Securities and Investments Commission (ASIC), the Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CYSEC) and the Securities Commission of The Bahamas (SCB). This is not only to prevent a Binance-Esque situation with derivatives trading but also for its other financial instruments, including Forex, Indices, Commodities, and Shares markets.
With all its many attractive features in place, Eightcap is poised to dominate the trading sector moving forward.
“The Eightcap offering focuses solely on creating regulated leveraged derivative trading opportunities for Cryptocurrency traders that offers more security than traditional offshore exchange platforms. We are thrilled to provide a solution that meets the needs of crypto derivative traders so that they can gain the best possible trading experience,” said Marcus Fetherston, Director of Operations at Eightcap.
Moving Forward
When news around Binances’ problems broke out, many were concerned that the derivatives market was on the way out. Eightcap, however, is showing that the sector has only scratched the surface of what it can do. Moving forward, clients at Eightcap can expect to have access to crypto derivatives with unmatched spreads, even as cryptocurrency is subject to regulatory restrictions.
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