Binance said in a statement that it would wind down its futures and derivatives business across Europe. As a result, users in Germany, Italy and the Netherlands will be unable to open new future or derivative products accounts. Users who already have an account will have 90 days from a date that Binance is yet to announce, to close any open derivative positions.
Earlier, UK’s Financial Conduct Authority had banned Binance from conducting ‘any regulated activity.
It said in the statement, “As the crypto ecosystem evolves globally, we are continually evaluating our products and working with our partners to meet our users’ needs. As such, 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.”
Regulators across the world have increased scrutiny of investor interest in the crypto industry. Regulators in UK, Germany, Hong Kong, and Italy are worried about consumer protection and anti-money laundering checks at crypto exchanges.
India’s Enforcement Directorate recently issued a show-cause notice to Binance’s subsidiary WazirX. The notice follows an investigation into an ongoing money laundering probe involving crypto transactions worth Rs. 2790.74.
Meanwhile, a Delhi Court has ordered the Delhi Police to register an FIR against Binance in a case of cryptocurrency fraud.
Malaysia’s securities regulator also reprimanded Binance for illegally operating a digital asset exchange in the country. Japan also said in June that Binance was operating illegally in the country.