Binance exchange is shutting down derivatives trading in Europe, starting with Netherlands, Germany, and Italy. The crypto space is experiencing a regulatory crackdown worldwide, and many exchanges are now altering their services to stay compliant.
Binance is the biggest cryptocurrency exchange in the world in terms of trading volume and is facing more hurdles than any other exchange during this crackdown.
The users of the exchange residing in the Netherlands, Germany, and Italy will not be able to new futures trading account from now on. This discontinuation of service could also expand to other European countries in the near future.
European citizens interested in crypto derivatives trading can still trade with leverage on popular crypto exchanges like Bybit.
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What Does it Mean for Binance Services in Europe?
Binance, on Friday, announced that they are continuously evaluating their products and are working with their partners to meet customer needs.
They also announced that they would be reducing access to such products throughout Europe to make the exchange more secure. Binance is accepting this change with a positive attitude as they believe it is a step in the right direction.
“The European region is a very important market for Binance, and it is taking proactive steps towards harmonizing crypto regulations, which is a positive sign for the industry,” wrote the popular exchange.
Binance crypto exchange is committed to starting a constructive dialogue with regulators across the world for the prosperity of the crypto space. This move shows that Binance is serious about regulations and believes in providing offering services in the right manner.
These restrictions might not seem pleasant, but they will help the exchange offer better services to its European customers.
Binance CEO Chanpeng Zhao, is still optimistic about the exchange’s future and took Twitter to address the Friday announcement. He believes that these regulations are crucial and will help with mass adoption.
European crypto traders can also sign-up on PrimeXBT to continue trading crypto derivatives.
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Crypto Regulatory Crackdown and Binance
The exchange has been under fire for quite some time now as the regulators from the US, UK, Germany, and Italy made regular complaints about the platform.
It is one of the major reasons Binance has been limiting its services actively. The recent changes Binance has made include delisting some margin trading pairs (for three FIAT currencies) and reducing max leverage from 125x to a moderate 20x.
Binance has also reduced the withdrawal limit for non-verified users from 2 BTC to 0.06 BTC. This is a massive change and will encourage users to trade after completing KYC (Know Your Customer) verification.
The US version of Binance that operates independently will also be going public in the near future.