Binance Halts Derivative Products Across Europe Amid Regulatory Hurdles

By José Oramas August 02, 2021 In Binance, Regulation

Binance has announced it will cease providing futures and derivatives products for users across Europe, starting with Germany, Italy and the Netherlands.

The decision comes after regulatory pressure has increased worldwide, forcing the exchange to limit its product offerings.

Binance Wants to “Harmonise Crypto Regulations”

A month ago, the UK’s Financial Conduct Authority (FCA) ordered Binance to halt its product offering to clients across the country, yet it seems to have been business as usual for the exchange.

However, after meeting with increasing international regulatory pressure, it appears Binance wants to take “proactive steps towards harmonising crypto regulations, which is a positive sign for the industry”, according to a tweet from the exchange.

Advertisement

We understand that many regulators at local levels may have their own positions on crypto, and we welcome the opportunity to engage in a constructive dialogue on local requirements.

Binance, Twitter

Users in the aforementioned countries will have 90 days to close their positions, Binance said. The date is set to be announced later.

Binance Shuts Down Stock Tokens Trading

Binance has been forced to negotiate with international regulatory bodies after they warned the exchange about its lack of authorisation to operate in their respective countries. Regulators in those countries have declined to comment on the decision.

The constant pressure also forced the exchange to shut down stock tokens trading months after the service was launched. The service allowed users to buy digital tokens linked to shares of companies, known as “stock tokens”, which could be bought for shares of publicly traded giants including Apple and Microsoft.

José Oramas
Author

José Oramas

José is a journalist and translator with a keen interest in blockchain and cryptocurrencies.

You may also like