Global virtual asset exchange Binance Holdings Ltd. has launched perpetual futures in Korea that allow investments with up to 20x leverage on Naver (NAVER(035420)), LG Electronics(066570), and others.
Binance Holdings Ltd. began supporting transactions (listing) as of the morning of the 14th for perpetual futures that track domestically listed stocks such as Naver, LG Electronics, Samsung Electro-Mechanics(009150), HANMI Semiconductor(042700), and the KODEX 200 exchange-traded fund (ETF). These products allow leverage of up to 20x and can be traded 24 hours a day without holidays.
Binance Holdings Ltd. has been rolling out perpetual futures products based on domestic stocks for months. Samsung Electronics(005930) and SK hynix(000660) were set to make leveraged transactions impossible in Korea, but the newly listed ones such as Naver allow transactions.
The financial authorities plan to check whether the transaction support in question could violate the Financial Investment Services and Capital Markets Act. An official at the Financial Services Commission said, "We need to verify Binance Holdings Ltd.'s exact business practices, but if leveraged transactions are possible in Korea, there could be potential violations."
Binance Holdings Ltd. later took steps to prevent domestic investors from investing in the products. A Binance Holdings Ltd. representative said, "Binance Holdings Ltd. places importance on users' locations and responsibility for complying with local regulations, and will work with the relevant authorities."