Popular cryptocurrencies exchange Binance has announced today that it is closing down its futures and derivatives product offerings in three European countries, the latest move by the company amid growing pressure from regulators.
The press release stated:
“Binance will wind down its futures and derivatives products offerings in Germany, Italy, and the Netherlands. With immediate effect, users from these countries will not be able to open new futures or derivatives products accounts. 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.”
The company later deleted the original tweet where it mentioned that Binance will eventually stop operating in Europe. The new tweet said:
“The European region is a very important market for Binance, and it is taking proactive steps towards harmonizing crypto regulations, which is a positive sign for the industry.”
The recent announcement is a recent addition to a string of moves Binance has been taking amid growing pressures from regulatory authorities across the world. Countries such as Japan, the UK, Germany, Hong Kong, and Italy have either banned the exchange or have issued regulatory warnings.
CEO Changpeng Zhao released an open letter on the 7th of July which discussed the current regulatory environment and the future ahead. He said:
“Before there were clear guidelines for the industry, we have always held Binance to the highest standard to prioritize our users’ best interests — a goal that we share with regulators around the world.”
Emphasizing the importance of a clearer regulatory framework, he further added:
“More regulations are, in fact, positive signs that an industry is maturing, because this sets the foundation for a broader population to feel safe to participate in crypto. I believe a well-developed legal and regulatory framework in the long term will be a solid foundation that truly makes crypto essential in everyone’s daily life.”