Binance to wind down crypto derivatives in 3 European countries
The world’s largest crypto exchange Binance has been compelled to wind down futures and derivatives products offerings in the Netherlands, Germany and Italy amid growing pressure from regulators all across the globe.
Another compulsory measure
“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 official announcement follows.
Earlier, the cryptocurrency exchange reduced the daily withdrawal limit for new users with basic account verification from 2 BTC to 0.06 BTC. Binance has also cut the maximum futures leverage to 20x.
On 28th July, the company announced the launch of a new API tool allowing customers to track their crypto transactions for tax compliance.
Earlier in June, the Financial Conduct Authority (FCA) banned Binance Markets Limited from any regulated activity within the UK without prior written approval.
The Cayman Islands launched an investigation into the exchange activity, Thailand and Hong Kong accused the company of operating without a license, Japan issued a warning as well.
Polish regulators called for caution when using Binance services. Italy and Malta warned consumers against the company’s unregulated activity, too.
Amid the current increasing pressure from regulators, Binance CEO Changpeng Zhao (CZ) published a letter outlining the company’s plans to protect its users and provide compliance with local legislations.
Major cryptocurrency exchange Binance is pulling futures and derivatives offerings from the European market. The announcement was made amid unprecedented pressure from watchdogs all across the world. In response, Binance has enhanced its compliance measures: tightened restrictions on anonymous withdrawals, added a tax reporting tool and beefed up its compliance team.
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