As it grapples with regulatory issues, Binance, one of the world’s most popular cryptocurrency exchanges, announced intentions to phase down its futures and derivatives products in Europe.
The transition will begin in Germany, Italy, and the Netherlands. It does not aggressively sell futures and derivatives goods in the region. However, it intends to start restricting access to those items.
Binance’s Statement
The Cayman Islands-registered firm exchange said:
“With immediate effect, users from these countries will not be able to open new futures or derivatives products accounts. With effect from a later date to be announced in further notice, users from these countries will have 90 days to close their open positions. As the crypto ecosystem evolves across the world, we are always assessing our products and working with our partners to fulfil the requirements of our users.”
On Twitter, the firm explained that the European area is a critical market for the company. Additionally, it is working “towards unifying crypto legislation, which is a great indication for the industry.”
The Global Pressure
However, Binance has recently been under fire from officials worldwide cracking down on cryptocurrencies and exchanges. The Securities Commission of Malaysia ordered suspend its website and mobile applications within two weeks.
Binance is “illegally running a digital asset exchange,” according to the commission. They have issued “a public reprimand against Binance for continuing to operate illegally in Malaysia despite being included on the SC’s Investor Alert List in July 2020.”
The Financial Conduct Authority of the United Kingdom ordered Binance to delete all advertising and financial incentives last month. Under the obligation, the firm clarifies that it can no longer operate in the United Kingdom. Moreover, it must not engage in any regulated activity in the country without first obtaining permission.
Exchanges are vital
Exchanges are a vital element of the bitcoin ecosystem. Binance, Huobi Global, Coinbase, Kraken, and FTX are the top five crypto exchanges by trading volume today. Every day, each of them transacts billions of dollars in commerce.
