Cryptocurrency exchange Binance said it would wind down its futures and derivatives business across Europe, the latest move by the platform to dial back its product range as pressure grows from regulators across the world. Binance users in Germany, Italy and the Netherlands will be unable to open new futures or derivatives products accounts with immediate effect, the exchange said in a statement on its website. Bitcoin and other cryptocurrencies have surged in popularity among retail investors during the global pandemic, prompting regulators to put trading platforms under increased scrutiny even though most cryptocurrency trading is unregulated.
Regulators, including in Britain, Germany, Hong Kong and Italy, worried about consumer protection and the standard of anti-money laundering checks at crypto exchanges, have ratcheted up pressure on Binance, one of the world’s largest crypto exchanges by trading volumes. Users in Germany, Italy and the Netherlands will, from a date to be announced later, have 90 days to close any open derivatives positions. Cryptocurrency spot trading, in contrast, remains mostly unregulated. Binance has also stopped offering cryptocurrency margin trading involving the Australian dollar, euro and sterling.