Binance, the leading cryptocurrency exchange by trading volume, has announced that it is discontinuing its derivatives and futures products in Germany, Italy and the Netherlands. This is likely the consequence of the regulatory crackdown that governments around the world have been exercising on Binance lately. The company also pointed out that this was the start of a comprehensive plan to reduce its derivatives offering across the European region in a now-deleted tweet.
Binance stops offering derivatives in Germany, Italy and the Netherlands
Binance, one of the largest cryptocurrency exchanges, has announced that it will close its derivatives and futures products in Germany, Italy and the Netherlands, three countries that belong to the European Union. In its official statement, Binance pointed out:
"As the cryptocurrency ecosystem evolves globally, we continuously evaluate our products and work with our partners to meet the needs of our users."
Binance could refer to statements released by its CEO Changpeng Zhao, who said the company is now compromised to register everywhere. The measure is already in place and users from these countries are now unable to open positions using these investment products. The interested user in the mentioned countries will now have 90 days to close their open positions. The company said this would be the start of a complete "run out" of their derivatives and futures services in Europe in a now deleted tweet.
In the sights of regulators
Binance has been targeted by regulators around the world for the past couple of months due to claims that it does not abide by the rules in some countries. On May 13, according to people aware of the situation, it was revealed that the exchange had been investigated by the DOJ and the IRS. But that was just the beginning. Since then, regulators in the UK and Japan have issued warnings against the exchange, saying it was not registered to do business in these countries.
The Thai SEC also filed a criminal complaint against Binance, while the Cayman Islands also said the exchange was not authorized to conduct operations there. Several UK banks have blocked Binance transactions in the country. Most recently, on July 15, Lithuania and Italy (one of the countries where Binance is withdrawing its products today) issued further warnings about Binance's illegal operation in their territories.
Changpeng Zhao, the current CEO of Binance, said he wanted to be "registered everywhere", stating that he would become a financial institution from now on and even hinted at stepping down from his role to facilitate this transition last week. .
What do you think of Binance's suspension of derivatives and futures products in Germany, Italy and the Netherlands? Let us know in the comments section below.
