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The latest move by Binance to suspend its derivatives and futures service comes as one-in-many moves the trading platform is exploring to come to peace with authorities around the world.
Binance, the world’s largest cryptocurrency exchange by trading volume, has announced plans to wind down all its futures and derivatives product offerings in Europe amid the growing regulatory clampdown from authorities. As announced by the trading platform, the move will be kickstarted by blocking new futures or derivatives products accounts in Germany, Italy, and the Netherlands.
Binance has come under the intense watch of regulators in countries like the United States, Canada, Hong Kong, and various nations within the European Union. While many watchdogs including the United Kingdom’s Financial Conduct Authority have banned some Binance activities within their shores, others have placed the exchange on a critical watchlist. The move to stop futures and derivatives trading is one of the strings of effort the exchange has employed to appease regulators as it looks toward being more regulatory compliant.
Billed to eventually spread toward the rest of its regions of operation in the EU, existing users from Italy, Netherlands, and Germany will have 90 days to liquidate all current positions. The exchange said the specific date from when the 90 days will start counting is billed to be announced at a later date.
“Binance plans to wind down its futures and derivatives products offerings across the European region, commencing with Germany, Italy, and the Netherlands. 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,” Binance revealed in the official announcement.
Binance Futures and Derivatives Halt: One in Many Moves to Nursing Regulatory Peace
The latest move by Binance to suspend its derivatives and futures service comes as one-in-many moves the trading platform is exploring to come to peace with authorities around the world. The exchange has also announced it will stop the trading pairs pegged with the British Pound Sterling (GBP), Australian Dollar (AUD), and the Euro (EUR) fiat currencies sometime next month.
The exchange is exploring ways to comply with local regulations around the world. In doing so, Chief Executive Officer Changpeng Zhao says he is willing to pay the ultimate sacrifice of stepping down should a perfect candidate with more regulatory experience come along. In all of its efforts to pacify regulators, the exchange revealed it has integrated a tax reporting tool to help its users meet their tax obligations while also limiting daily withdrawals for customers with no KYC records.