Embattled cryptocurrency exchange Binance has moved to shut down another of its crypto products in response to the ongoing global scrutiny from regulators. The exchange will no longer be providing crypto-based futures and derivatives offerings across three European countries.
Binance Winds Down Derivatives And Futures In Europe
In particular, the exchange announced on July 30 that the new change will initially affect customers in the Netherlands, Italy, and Germany — who will essentially not be allowed to open new accounts for futures or derivatives.
From a yet-to-be-determined later date, clients from these three countries will have 90 days to close their open positions. Binance added that Europe is a key market for the firm, and lauded the region’s “proactive steps towards harmonizing crypto regulations”.
Binance’s Difficult Relationship With Global Regulators
The move is just the latest in a flurry of steps undertaken by Binance to ramp up its compliance measures in bid to quell global regulators’ concerns regarding local requirements. Throughout July, the exchange has cut its daily withdrawal limits, ceased its stock tokens trading offering, unveiled a tax reporting tool, and trimmed its leverage limits.
Suffice to say, Binance has found itself in the middle of a regulatory spotlight from the UK, Japan, Italy, Singapore, the Cayman Islands, among others, as of late.
Binance’s regulatory troubles worsened on Friday after Malaysia took enforcement action against the exchange. An announcement by the Securities Commission (SC) Malaysia states that the exchange has continued to conduct its activities in Malaysia despite previous warnings.
Binance now has 14 days starting from July 26 to disable its website (www.binance.com) and mobile apps, stop all media and marketing activities for its services, and immediately bar investors in the country from accessing its Telegram group. CEO Changpeng Zhao, in particular, has been ordered to ensure these decrees are carried out.
Meanwhile, Zhao has stated in the past that “compliance is a journey”. He is even willing to step down from his position if the exchange is able to find a suitable candidate with a strong regulatory background.