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Binance is suspending derivatives trading in Europe, beginning with Germany, Italy, and the Netherlands.
Global cryptocurrency exchange in trouble Binance continues to cut services quickly in response to ongoing regulatory scrutiny around the world, partially shutting down derivatives trading.
Binance announced on Friday that it would suspend derivatives trading across Europe, beginning with Germany, Italy, and the Netherlands. The company clarified that users in the aforementioned countries are no longer able to open new futures accounts on Binance.
We’re continually evaluating our products and working with our partners to meet our users’ needs.
Today we’re announcing that we plan to wind down our derivatives products offerings across the European region, commencing with the Netherlands, Germany, and Italy.
— Binance (@binance) July 30, 2021
Binance also stated that the exchange does not actively market futures and derivatives products in the region, and that it intends to further restrict access to these products in the region. “The European region is a very important market for Binance, and it is taking proactive steps towards harmonising crypto regulations, which is a positive sign for the industry,” wrote Binance.
The latest move, according to the exchange, is consistent with Binance’s commitment to engage in a constructive dialogue with global regulators about local requirements. Cointelegraph has contacted Binance and will provide an update.
Binance’s latest suspensions come on the heels of a slew of new trading restrictions imposed by global regulators, including those in Germany and Italy. The Italian Companies and Exchange Commission announced in mid-July that Binance Group and affiliated companies were not authorised to provide investment services or operate in the country. A dozen other global financial authorities, including those in the United States and the United Kingdom, have issued similar warnings in recent months.
Binance has been actively limiting its services, delisting margin trading pairs for three fiat currencies and limiting maximum leverage positions from 125x to 20x earlier this week, in accordance with the company’s commitment to collaborate with regulators to offer its services legally. Binance is also planning to reduce daily withdrawal limits in August from 2 Bitcoin (BTC) to 0.06 BTC.
Despite Binance’s mounting regulatory challenges around the world, the company’s CEO, Changpeng Zhao, appears to be optimistic about the cryptocurrency exchange’s future. Last week, Zhao revealed that Binance US, a cryptocurrency exchange based in the United States that operates independently of Binance, is planning to go public.
“Binance US is considering an IPO. Most regulators are familiar with a particular pattern, such as having a headquarters or a corporate structure. But we are putting in place those structures to make it easier for an IPO to take place,” Zhao explained.