Crypto trading platform Binance has made the decision to stop offering futures trading services, the exchange has announced via its blog. In order to comply with the European Union's legal framework, the platform has decided to limit its futures and derivatives services.
Users in the Netherlands, Germany and Italy have been the first to suffer the restrictions. Traders in these countries have 90 days to close their derivatives positions. In the future, the exchange plans to expand the list of countries affected by the restrictions.
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"We are aware many local regulators may have their own positions on cryptos, and we welcome the opportunity to engage in constructive dialogue on local regulations," the platform said.
The price of Bitcoin has fallen 3.7% to $38,581 after the news broke. The restrictions coincide with pressure on Binance from regulators in the US, Canada, UK, Cayman Islands, Italy, Poland, Japan, Hong Kong, Thailand and Singapore.
iHodl has previously reported Binance has started limiting the amount of leverage for new traders and that it is preparing to apply the same restrictions to existing customers. As tweeted by Binance CEO Changpeng Zhao, as of July 19, new users' positions on Binance Futures cannot exceed 20 times their own funds.