As regulatory agencies across the world begin to zero in and put its activities under much scrutiny, the world’s largest crypto exchange by trading volume, Binance, has begun to close its flanks.
In a move that is the latest in a series of steps, the exchange has put on hold its futures and derivatives offerings throughout Europe.
With this move, it is impossible for the company’s clients in European countries like Germany, Italy, and the Netherlands to open new futures or derivatives product accounts. Users in these countries have also been notified that they will have a 90 days ultimatum , from a yet to be announced date, to close their open positions on the platform.
Earlier on Monday, the exchange announced that it would stop offering cryptocurrency margin trading with the Australian dollar, euro, and sterling. Before the decision to stop offering trade in certain currencies, in the early days of the month, Binance announced the drop of its support for tokenized stocks.
The latest move by the exchange is coming directly on the heels of the decision by regulators in the United Kingdom, Canada, Japan, Singapore, and Italy, among others, to come together and issue warnings about the legal status of Binance in their respective countries.
Thailand’s Securities and Exchange Commission had also earlier this month filed a criminal complaint against the exchange for operating a digital asset business without a license.
While the moves by the exchange are understandable, the question is whether it can keep its impressive market share while operating under increased regulatory scrutiny.
Binance, a four year-old exchange, boasts an expansive suite of products for a company founded only four years ago. It’s offerings include its core exchange product, institutional services, a decentralized exchange built on its own Binance Smart Chain, a host of trading services, derivatives products, a freshly launched NFT marketplace, and more.