Binance Plans to Close their Futures and Derivatives Product Offerings in More EU Countries

In what appears to be a bid to comply with prospective regulations, Binance has decided to close their Futures and Derivatives Product Offerings in yet more EU nations.

Goodbye Futures and Derivatives 

The decision from Binance will begin with immediate notice and see initial changes implemented in Germany, Italy, and the Netherlands. Users were unable to open new futures or derivatives accounts as of 30 July. 

In a forthcoming notice from the team at Binance, users with open positions will be given no more than 90 days to conclude the relevant trades.  

“With immediate effect, users from these countries will not be able to open new futures or derivatives products accounts,” the cryptocurrency exchange announced via official channels. “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.”

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Is There Regulatory Scrutiny?

It would appear so. In a notice dated the 26th of June, the United Kingdom’s Financial Conduct Authority explicitly stated: 

“Binance Markets Limited is not permitted to undertake any regulated activity in the UK. This firm is part of a wider Group (Binance Group). Due to the imposition of requirements by the FCA, Binance Markets Limited is not currently permitted to undertake any regulated activities without the prior written consent of the FCA.”

Days later, Japan’s top financial regulator, the Financial Services Agency, responded in kind, issuing a warning to Binance Holdings Ltd via an official and public document. 

We’ve seen similar murmurs coming out of Germany, and indeed the U.S, with Bloomberg reporting Binance is under investigation by the U.S. Justice Department and Internal Revenue Service.

However, the reality seems to be that there is no real regulatory clarity, and while warnings persist, Binance is seemingly taking every step to be in line with regulatory frameworks. The recent closure of the futures market by Binance appears to be another step toward institutional alignment. 

Source : bsc.news