Binance to Limit Access to Derivatives in Europe?

The world's largest cryptocurrency exchange will no longer offer derivatives and futures in the Netherlands, Germany and Italy. Binance Exchange bowed to the pressure of regulators, and the new head of the US also wants greater supervision over cryptocurrencies The Securities and Exchange Commission (SEC) Gary Gensler. Contrary to appearances, this can be very good news for the digital money market. 

Binance cryptocurrency exchange has just announced that derivatives and futures will no longer be available in markets in Germany, Italy and the Netherlands for the foreseeable future. 

“As the cryptocurrency ecosystem evolves globally, we are constantly evaluating our products and working with our partners to meet user needs. As such, Binance will discontinue its futures and derivatives offerings in Germany, Italy and the Netherlands. Effective immediately, users from these countries will not be able to open new futures or derivatives accounts. Effective at a later date to be announced in a subsequent announcement, users in these countries will have 90 days to close their open positions." – we read in the message issued by Binance.

This is only the beginning, because the most risky instruments may not be available on the entire European market. They do not represent a great value in the company's revenues, but they cause a lot of PR damage, because you can lose a lot on them, especially if you are an inexperienced investor. 

Binance under pressure from market regulators

European regulators have been keeping a close eye on the Binance cryptocurrency exchange for weeks now. The Department of Justice in the US, regulators from Great Britain and Japan, and even Poland Office of the Polish Financial Supervision Authority (UKNF) warn against Binance. Even the most liberal countries are taking hits: the Thai SEC has filed a complaint, and Cayman Islands regulators argue that Binance was never allowed to operate in their country. Transactions with Binance are also blocked by British banks.

Binance has no intention of fighting anyone and announces that it will apply for the appropriate licenses in each country, even if it means that it will be an officially registered financial institution, subject to the same regulations as traditional banks.

The new head of the SEC wants change

It's also hot around cryptocurrencies in the US. Especially after the reshuffling of the highest levels of the US Securities and Exchange Commission (SEC). The new head of the supervisory authority, Gary Gensler, nominated by US President Joe Biden, does not hide that he is not a big fan of digital money. On the one hand, he admits that he does not know much about them, but he also intends to tighten the screw more through further regulations. 

Especially since the market is huge and is characterized by equally great price fluctuations. Currently, it is estimated that USD 1,6 trillion is invested in all cryptocurrencies in the world. 

regulations? They can help with the adoption of cryptocurrencies

However, the new regulations do not have to be an anchor that will not allow the cryptocurrency market to develop. Wisely introduced, they should actually work the opposite way, and there are many indications that this will happen. It is thanks to them that soon the operation of eg. ETFs (exchange-traded funds) based on Bitcoin. Thanks to the precise regulations, it will be a product that is supposed to offer good investor protection. 

The same is to be true at virtually every stage of the "life" of cryptocurrency projects. The regulations are to apply to the initial offers of newly emerging cryptocurrencies, the trading system itself, all exchanges, as well as ETFs and other instruments based on cryptocurrencies. Thanks to this, the market can only gain, because fraudsters who are attracted to cryptocurrencies by the possibility of quick and large earnings will be excluded from it.