Binance winds down futures and derivatives products in Europe
Only a week after Binance announced its decision to stop crypto margin trading services involving Australian Dollar, Euros, and Pounds sterling, the largest crypto exchange by trading volume has taken another decision to wind down its futures and derivatives products offerings in Europe.
According to the exchange, this is part of its effort to meet users’ needs as it continually evaluates products and works with partners. For now, the derivatives products service stoppage will take effect with the European region.
While we do not actively market Futures and Derivatives Products locally, we plan to start further scaling down access to those products in the region. With immediate effect, users in the Netherlands, Germany, and Italy cannot open new futures accounts.
The exchange is recently facing strict regulatory hurdles from several financial bodies, with the UK, Japan, and the US expressing dissatisfaction in the operation of its business. According to the exchange, the European region is a very important market for its business, and so there is the need to take proactive measures in harmonizing crypto regulations. This may have a positive impact on the industry.
As part of the statement, the exchange admitted that several regulators at the local level have their positions on cryptos, and to meet the local requirements, it is open to any constructive dialogue to provide its services effectively.
The exchange recently reduced its maximum leverage option to 20X and set a reduced withdrawal limit for users who have not completed the Know-Your-Customer (KYC) verification.
Malaysia goes after Binance
While the exchange is evaluating its products to provide services that comply with the requirement of regulators, the Securities Commission Malaysia (SC) has announced enforcement actions against Binance for operating illegal Digital Asset Exchange. All four entities of Binance: Binance Holdings LTD, Binance Digital LTD, Binance UAB, and Binance Asia Services Pte LTD have been asked to cease operation in Malaysia.
The company has been ordered to disable its website and mobile applications within 14 business days starting from July 26. Also, they are to cease all media and marketing activities and to prevent Malaysian investors from accessing its Telegram group.
Investors are advised to stop dealing with and investing through illegal DAX. Those who currently have accounts with Binance are strongly urged to immediately cease trading through its platforms and to withdraw all their investments immediately.
In addition to the dozens of international financial authorities issuing warnings to the exchange, Italy recently announced that Binance Group and its affiliates are not legally permitted to offer investment services in the country.
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