July 30, 2021, | AtoZ Markets – Binance cryptocurrency exchange today announced the termination of trading in derivative products for residents of the European region.
Why Binance is restricting derivatives trading in Europe?
According to the notice, futures trading was immediately closed to residents of Germany, Italy, and the Netherlands. Users from these regions cannot open new positions and must close existing ones within 90 days from the date to be announced later.
"We are constantly evaluating our products and working with partners to meet user needs,” writes the exchange. "The European region is very important to Binance. The authorities here are acting proactively to form more harmonious regulation of cryptocurrencies, and this is a positive sign for the industry. We understand that many local regulators may have their own stance on cryptocurrencies and welcome the opportunity to engage in constructive dialogue. Although we are not actively promoting futures and derivatives in individual countries, we intend to start further restricting access to these products in the region."
This week, Binance announced that it has lowered its withdrawal limits for unverified accounts from 2 BTC to 0.06 BTC per day. Although users of crypto exchanges often resort to VPNs to bypass various restrictions, this requirement will further complicate access for European clients to the Binance futures platform.
As AtoZMarkets earlier reported, Binance attracted the attention of the UK Financial Conduct Authority (FCA). The agency issued a warning that the company does not have its permission to provide regulated services.
Read also: Binance CEO Willing to Step Down Amid Exchange Crack Down
A similar warning was issued by the Italian regulator, the Central Bank of Lithuania, and the German Federal Financial Supervision Authority expressed doubts about the legality of the offer of tokenized shares on Binance, which the exchange subsequently removed from trading.
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