2021-7-31 15:03 |
Top crypto exchange Binance is ceasing to offer futures and derivatives products in Europe against the backdrop of regulation issues. Users in Germany, Italy, and the Netherlands will be affected immediately. On its website, the exchange states: “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 a further notice, users from these countries will have 90 days to close their open positions.”
The Cayman Islands-registered exchange adds:
“As the crypto ecosystem evolves globally, we are continually evaluating our products and working with our partners to meet our users’ needs.”
On Twitter, the company assured Europe was a very important market and that they were taking steps towards harmonizing regulations. As watchdogs worldwide crack down on cryptocurrencies and the platforms transacting them, Binance is facing more and more pressure, Yahoo Finance wrote. Its decision has all the makings of a preemptive move, an effort to stay ahead of developments.
Regulatory clampdownThe UK’s Financial Conduct Authority recently ordered the exchange to remove all advertising and financial promotions. More specifically, they were required to make it clear they were not allowed to operate in the UK anymore. Similarly, Malaysia’s Securities Commission ordered the exchange to disable its mobile apps and site in the country within two weeks with the argument that they were “illegally operating a digital asset exchange”. Allegedly, they continued to operate despite having been included in the commission’s Investor Alert List a year ago. German, Hong Kong, and Italian regulators, increasingly worried about consumer protection and money laundering, have also been pressuring Binance in recent weeks, Reuters reports.
Hedging against riskBinance is the crypto exchange with the highest trading volume in the world, followed by Huobi Global and Coinbase. Kraken and FTX round out the top five. Each exchange has daily turnover of billions of dollars. On its website, Binance warns that futures trading carries substantial risk and the exchange is not liable for any loss that might arise from use of futures.
The post Binance exits futures and derivatives trading in Europe appeared first on Invezz.
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