Binance, one of the world’s biggest crypto-monetary exchanges, has announced intentions to end futures and derivatives trading in Europe as it reels from regulatory problems.
The shift begins in Germany, Italy, and the Netherlands. It has emphasized that it does not aggressively promote local future goods and derivatives but wishes to continue to increase the availability of these items in the area.
Binance’s blog post states the following:
As the crypto ecosystem evolves globally, we are continually evaluating our products and working with our partners to meet our users’ needs.As such, Binance will wind down its futures and derivatives products offerings in Germany, Italy, and the Netherlands. 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.
Binance has recently been under considerable strain as authorities all around the globe are tackling cryptocurrencies and exchanges. Last month, Binance was told by the UK Financial Conduct Authority to delete all advertising and financial incentives.
The business has to state clearly that it is no longer allowed to operate in the UK and must not operate in the UK without prior permission.
Exchanges constitute an important component of the crypto-monetary environment. Today, Binance, Huobi Global, Coinbase, Kraken, and FTX are among the top five cryptocurrency exchanges for trade volumes. Each of them spends billions of dollars on business every day.
Binance’s Increased Regulatory Scrutiny
Binance has faced scrutiny worldwide due to its unregulated crypto offerings. The latest country to put the exchange in its crosshairs is Malaysia.
Malaysia has initiated enforcement action against the crypto-monetary platform Binance, the Securities Commission announced on Friday to prohibit it from functioning in the nation.
Media Release: SC Takes Enforcement Actions on Binance for Illegally Operating in Malaysia.
— SC Malaysia (@SecComMY) July 30, 2021
It claimed Binance Holdings Limited, its CEO Zhao Changpeng and three other bodies registered in the UK, Lithuania and Singapore were publicly reprimanded for their continued operations in Malaysia although they were placed to the warning list of the Regulator a year ago.
The regulator ordered Binance to deactivate its website and mobile apps, to stop media and marketing operations and to limit the access to its telegram group by Malaysian investors.
The Securities Commission of Malaysia ordered it to suspend its website and mobile applications in Malaysia for two weeks on Friday.
The commission said that Binance “was unlawfully trading a digital asset exchange” and issued a public reproach for continuing illegal operations in Malaysia