Two major crypto exchanges are reducing maximum leverage on offer to traders
In Twitter posts, executives cited consumer protection, with FTX’s Sam Bankman-Fried aiming to “encourage responsible trading.” Bankman-Fried said the average leverage employed by traders is about two times their positions.
“This will hit a tiny fraction of activity on the platform,” wrote Bankman-Fried in a post. “While many users have expressed that they like having the option, very few use it.”
Binance, the world’s largest crypto exchange by trading volume, said it is reducing the maximum leverage users can use to trade futures contracts, a day after derivatives exchange FTX announced the same change, moves perhaps designed to help avoid the worst of a coming regulatory storm.