Binance, the largest cryptocurrency exchange, has released a statement that it will scale back its futures and derivatives offerings across Europe. This turnaround is due to constant unprecedented pressure from regulatory bodies.
Binance users in Germany, Italy and the Netherlands will not be able to open new futures or derivatives accounts, according to the exchange’s website statement. Also, according to the platform, users from these countries will have 90 days to close their open positions. From a date to be announced later.
Binance writes on Twitter that the exchange is not actively promoting futures and derivatives in the European Union. So it plans to further reduce access to these products.
The move comes amid growing pressure on the exchange from financial authorities around the world; including the UK, Germany, Hong Kong and Italy.
Binance noted that Europe is a very important market for the strategic development of the exchange. So the marketplace is taking active measures to “harmonize” the rules of cryptocurrency regulation. Despite the difficult relationship with regulators; the exchange’s management believes that their attention to cryptocurrencies can be regarded as a positive sign for the entire industry. Binance has once again expressed its willingness to engage in constructive dialogue with regulators to ensure compliance with their requirements.
Note that, led by Canadian Changpeng Zhao, Binance offers users around the world a wide range of services. From cryptocurrency spot trading and derivatives to tokenized versions of stocks. The platform also manages an exchange that allows users to trade directly with each other. Binance had a trading volume of $ 662 billion in June; which is almost ten times more than in July 2020, according to analyst firms. At the same time, in one day in May, daily sales volumes reached $ 92 billion.
Regulatory attacks on Binance
Following an unprecedented crackdown, Binance said on Monday that it would stop offering margin trading in cryptocurrencies involving the Australian dollar, euro and pound sterling. Earlier this month, the exchange said it had stopped selling stock-related digital tokens after regulators took tough action on the cryptocurrency exchange platform’s exchange-traded token offerings.
For example, the Japanese regulator said last week that Binance was operating illegally in the country. At the same time, the German supervisory authority reported back in April that the exchange risks fined for offering tokens related to shares.
In addition, the Securities Commission of Malaysia (SCM) issued a statement urging Binance to stop all operations in the country. The exchange and its reporting companies must close access to their sites and applications for citizens of Malaysia and stop providing them with any services. The order of the department concerns the British company Binance Digital Limited, the Lithuanian Binance UAB and Binance Asia Services Pte Ltd, registered in Singapore. Binance is required to comply with the agency’s order within 14 business days after July 26, 2021. In addition, SCM urged citizens to refrain from trading on cryptocurrency exchanges that operate illegally in the country.