Binance announces closure of all Futures and Derivative services across Europe

By Palak Malhotra
Published July 30, 2021 Updated July 30, 2021
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Binance announces closure of all Futures and Derivative services across Europe

By Palak Malhotra
Published July 30, 2021 Updated July 30, 2021

Binance announced it would shut down all Futures and Derivatives operations throughout Europe. Additionally, Binance exchange users in the Netherlands, Germany, and Italy can no longer open new futures trading accounts, effective immediately. The crypto exchange has stated that the users will have 90 days, starting from the day of the announcement to withdraw their funds and close their derivatives and futures accounts.

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Binance shared that this move has come as part of their plans to wind down its futures and derivatives products offerings across the European region. The crypto exchange also added a risk warning to the press release, highlighting the volatility of Futures trading.

“Futures trading carries substantial risk and the possibility of both significant profits and losses. Past gains are not indicative of future returns. All of your margin balance may be liquidated in the event of extreme price movements.”

Malaysia bans Binance

Binance’s global regulatory troubles worsened as Malaysia’s Securities Commission (SC) declares a ban on the exchange in the country. Binance ban in Malaysia came as another regulatory jolt for the exchange. According to the Securities Commission, Binance has been “illegally operating a digital asset exchange.”

Like several other nations that have put a ban on Binance services, Malaysia’s regulatory policies also demand crypto exchanges be approved and registered by the Securities Commission. Furthermore, Binance is also instructed to halt marketing activities and prevent Malaysian investors from accessing its Telegram group.

Binance reduces maximum leverage limit

Last week, Binance along with FTX derivatives exchange announced a notable reduction in its maximum leverage limits for derivates trading. The exchange shared that it had begun slashing its leverage limits for new users and would continue to implement the same for existing investors in the coming weeks.

Binance co-founder and CEO, Changpeng Zhao tweeted on Sunday that Binance futures have commenced the limitation on leverages from 19th July itself, restricting the maximum leverage limit to 20x for new users.

“In the interest of Consumer Protection, we will apply this to existing users progressively over the next few weeks,” Zhao tweeted.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Palak Malhotra
245 Articles
Journalism & Mass Comm. ‘21 graduate, Palak is a GenZ journalist with background in Lifestyle journalism & PR. At CoinGape, Palak is a junior crypto journalist preparing for Web 3.0

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