Binance, the world’s leading cryptocurrency exchange, has suspended futures and derivatives products offerings across Europe, starting with Germany, Italy and Netherlands
Binance, the world’s leading cryptocurrency exchange, has stopped offering derivatives and futures across Europe, starting with Germany, Italy and the Netherlands. Users in these countries have been banned from opening new futures or derivative accounts, but why exactly has such a drastic step been taken in an important and growing market and why is it under strong regulatory pressure and control around the world?
Some countries have banned it and others have restricted its operation. Many others have warned them to stop their “illegal” operations in their territories. Even in India, Binance-owned WazirX is under the Enforcement Directorate’s radar for alleged money laundering. Investigating allegations that China-powered gambling apps laundered some of the funds through WazirX. However, the Indian stock exchange stated that it complied with all applicable laws.
In addition, major banking institutions and payment processors in the UK have started restricting transfers to and from Binance due to “excessive fraud rates”. The company is also said to be preparing to lower the daily withdrawal limits from two bitcoin to 0.06 BTC this month. Despite recent efforts to appease regulators, Binance has been forced to cease trading and endorsing stock tokens like Tesla and Coinbase.
Earlier this year, the Thai SEC filed a criminal complaint against Binance, while the Cayman Islands said the exchange could not conduct operations there in violation of anti-money laundering and terrorist financing laws. The Department of Justice and the US Internal Revenue Service are also reviewing the binance.
There are also some questions about finances. For example, it is not clear where the company is based. The company’s structure is also mysterious, although it is headed by a Canadian, Changpeng Zhao, simply known as “CZ”. The spokesman said the company is “decentralized” and “works with a number of regulated companies around the world”.
