Binance, the world’s largest cryptocurrency exchange by volume, has announced that it will be stopping all trading of crypto futures and derivatives in European countries. The company reportedly takes this step due to the uncertainty surrounding regulatory frameworks for such products and its unwillingness to expose itself to “potential risks” involved with offering them.
Not only does this represent a significant change in Binance’s strategy, but it also highlights the need for regulators worldwide to come up with more precise guidelines concerning these digital assets and their derivatives.
The Binance Wind-Down
As the company said, “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, “all trading of futures and derivatives will be suspended, and users in these countries will no longer be able to register new accounts for crypto futures and derivative products as per regulations.”
However, the exchange remains committed to supporting crypto trading in Europe and will keep offering crypto-to-crypto transactions on its platform. Also, users from these countries will have 90 days to close their positions.
In addition to that, the company stressed that it “will continue providing more services to our European customers such as support for multiple languages, payment processing, corporate accounts, and secure wallet storage.”
Binance is recently having a hard time with regulations. Many countries have prohibited the company’s operations, partly because regulators are investigating its WazirX exchange on allegations of fraud.