Binance cryptocurrency exchange will stop trading cryptocurrency derivatives in Europe, starting in Germany, Italy and the Netherlands. The Malaysian regulator has demanded that the exchange close all transactions in the country.
According to
a statement Binance, published on the exchange website, users from these European countries must close cryptocurrency futures positions within 90 days. For new users from these countries, the ban is effective immediately – traders will not be able to open new accounts for cryptocurrency-based derivatives.
Binance
writes on Twitter that the exchange is not actively promoting futures and derivatives in the European Union, so it plans to further reduce access to these products.
These restrictions followed amid strong pressure on the exchange from international regulators, including from Germany and Italy. In mid-July, the Italian Companies and Exchanges Commission (CONSOB) announced that the Binance Group and its affiliates were not allowed to operate in the country and provide investment-related services to its citizens. In recent months, similar warnings have been issued by financial regulators in several other countries, including the UK Financial Conduct Authority (FCA).
Binance noted that Europe is a very important market for the strategic development of the exchange, so the marketplace is taking active measures to “harmonize” the rules of cryptocurrency regulation. Despite the difficult relationship with regulators, the exchange’s management believes that their attention to cryptocurrencies can be regarded as a positive sign for the entire industry. Binance has once again expressed its willingness to engage in constructive dialogue with regulators to ensure compliance with their requirements.
Also, today the Securities Commission of Malaysia (SCM)
published a statement urging Binance to stop all operations in the country. The exchange and its reporting companies must close access to their sites and applications for citizens of Malaysia and stop providing them with any services. The order of the department concerns the British company Binance Digital Limited, the Lithuanian Binance UAB and Binance Asia Services Pte Ltd, registered in Singapore.
Binance is required to comply with the agency’s order within 14 business days after July 26, 2021. In addition, SCM urged citizens to refrain from trading on cryptocurrency exchanges that operate illegally in the country.
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