Binance, the troubled global cryptocurrency exchange, continued to quickly contain its services in response to ongoing global regulatory review and partially closed derivatives trading.
Binance officially announced on Friday that it will suspend its derivatives trading in Europe starting from Germany, Italy and the Netherlands. The company clarified that users in the aforementioned countries cannot immediately open new futures accounts on Binance.
We constantly evaluate our products and cooperate with our partners to meet the needs of users.
Today we announced that we plan to gradually reduce our supply of derivative products in Europe starting from the Netherlands, Germany and Italy.
-Binance (@binance) July 30, 2021
Binance added that the exchange is not actively selling futures and derivative products locally and plans to further reduce access to these products in the region. Binance wrote: “The European region is a very important market for Binance. It is taking active measures to coordinate cryptocurrency regulations, which is a positive sign for the industry.”
The exchange noted that the latest move is in line with Binance’s commitment to engage in a constructive dialogue with global regulators on local requirements. Cointelegraph contacted Binance and will update the story.
As the company faces tremendous pressure from global regulators, Binance’s latest trading suspension was implemented after a series of new trading restrictions. Including those in Germany And Italy. In mid-July, the Italian Companies and Exchange Commission stated that Binance Group and its affiliates Unauthorized provision of investment services And operate in the country.About a dozen other global financial institutions in countries such as the U.S. and U.K. have already Related warnings issued In recent months.
Meet the company’s promise Cooperate with regulators In order to provide services legally, Binance has been actively restricting its services. Delisting Margin Trading Pair Three fiat currencies and Limit the maximum leverage position Earlier this week, it increased from 125 times to 20 times. Binance is also preparing to start from 2 Bitcoins (Bitcoin) To 0.06 BTC in August.
Although Binance is facing more and more regulatory challenges around the world, the company’s CEO, Changpeng Zhao, Obviously optimistic about the future of cryptocurrency exchanges. Last week, Zhao disclosed that Binance US, a US cryptocurrency exchange operated separately from Binance Want to go public.
“Binance US is considering the IPO route. Most regulators are familiar with a certain model or have a headquarters and a company structure. But we are building these structures to make the IPO easier,” Zhao said.