Binance to Exit Futures and Derivatives Business in Europe Amid Ongoing Regulatory Scrutiny

Binance, the world’s largest cryptocurrency exchange, has announced it will discontinue its futures and derivatives business in Europe, as the ongoing crackdown from global regulators gains momentum.

According to a twitter statement published on Friday, Binance will no longer allow its users in Italy, Germany, and the Netherlands to create new accounts for futures and derivatives trading effective immediately. Users in the affected European countries have been granted 90 days to close any open derivatives positions. The latest move comes as the exchange platform faces heightened scrutiny from regulators around the world.

However, the latest move will also likely carry implications for retail investors, particularly those trading crypto derivatives. “A huge amount of money in crypto markets is floating around exclusively because of the existence and availability of such products,” explained Joseph Edwards, a cryptocurrency broker at London-based Enigma Securities, to Reuters. “Binance have crowded out large sections of the derivatives market over the last couple of years— if their retreat from said market deepens, the medium-term impact is unlikely to be positive.”

Binance’s decision to pull out from derivatives marks the latest move to forego a specific crypto product. Regulators in Italy, Germany, the UK, and Hong Kong have grown increasingly concerned about the lack of oversight on anti-money laundering controls across crypto exchanges, and as a result have cracked down on Binance, which seemingly has floated through regulatory scrutiny up until recent.

On Tuesday, Binance CEO Changpeng Zhao said that the crypto exchange is looking to make amends with regulators, adding that the platform is looking to gain approval to create regional headquarters. Although it is certainly a positive sign for Binance fans, it appears that the crypto exchange may have finally been backed into a corner following an onslaught of problems, which can be explored further here, here, here, here, here, here, and here.


Information for this briefing was found via Binance and Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

ESGold Outlines $24.3 Million NPV For Tailings Reprocessing Project

First Majestic Encounters 711 g/t Silver Equivalent Over 8.0 Metres In Ongoing Exploration At Los Gatos

Related News

DOJ Tells Binance: Pay $4 Billion To End Legal Troubles

The United States Justice Department is currently engaged in negotiations with Binance to bring an...

Tuesday, November 21, 2023, 10:57:00 AM

Iran, Syria, and Binance Are Lawsuit Targets in Connection with Hamas Attack

Three American families affected by Hamas’ October 7 attack on Israel have filed a lawsuit...

Thursday, February 1, 2024, 03:02:00 PM

US Authorities Arrests Founder Of Crypto Exchange That No One Has Heard Of

The US government arrested Anatoly Legkodymov, a Russian national and co-founder of Bitzlato, a Hong...

Thursday, January 19, 2023, 12:07:42 PM

Binance: DOJ Wants To Ban Changpeng Zhao From Leaving US After He Posted Bail That Allowed Travel

The U.S. Department of Justice (DOJ) has expressed concerns over the possibility that Changpeng Zhao...

Friday, November 24, 2023, 10:10:46 AM

Regulators Raid Binance Australia Offices in Ongoing Derivatives Probe

Binance seems to be facing an onslaught of regulatory and legal kerfuffle as the offices...

Wednesday, July 5, 2023, 03:07:00 PM