Binance woes continue as it exits derivatives space in Europe, faces investigation in India

Karthik Subramanian

Binance, the largest crypto exchange, seems to have no end in sight as far as its operations go as it has been forced to exit the derivatives trading space in many regions across Europe and it faces investigation from the Indian authorities in a money-laundering probe.

binance

This comes close on the heels of the news that it has been asked to exit the crypto space in Malaysia for operating illegally despite being slapped with SC caution.

The latest move in Europe comes up due to increased scrutiny about the actions of the crypto exchange from regulators all around the world and the exchange announced that it will no longer accept new clients for derivatives products from Germany, Italy, and the Netherlands. It has also been facing heat from regulators in the UK and Hong Kong as well as the regulators begin to crack down on errant crypto exchanges.

It has to be seen whether these actions would be temporary as Binance struggles to keep pace with regulation, having grown globally very quickly over the last few years, due to the lack of regulation at that time. Now that the regulators are beginning to crack the whip, the company is struggling a bit to catch up and the CEO of the company, CZ, had even announced that he was willing to step down if that helped the company to get regulated in many regions quickly.

But his woes do not seem to end there as the Enforcement Directorate (ED) in India has summoned Binance executives for having helped Chinese betting companies and others to launched over $134 million from India over a period of close to a year through the crypto exchange WazirX, which is owned by Binance. The exchange is also accused of signing up clients without following mandatory KYC requirements which have made it difficult to collect details of clients and fraudulent accounts.

Though accusations have been flying from the ED thick and fast, WazirX and Binance continue to maintain that they have not received any notices so far and that they are willing to cooperate fully with any kind of scrutiny of their actions. The details continue to be murky with regards to this case but one thing is clear though, that India is one more in the list where Binance is in trouble as far as regulators go and it is going to be a difficult and long process for the company to get into the good books of the regulators as it struggles to keep its exchange running.

  • Read this next

    Retail FX

    Weekly Roundup: FX prop firms switch to cTrader, who moved $1.35B BTC?

    The foreign exchange and cryptocurrency markets are always active, and this past week was no exception. Stay ahead with a selection of essential stories and updates that matter most to market participants.

    Digital Assets

    Bitcoin breaks all records with a massive $1.347 billion transaction

    This transaction has surpassed previous records, setting a new benchmark for Bitcoin trades. Before this event, the largest Bitcoin transactions included a $1.1 billion trade in April 2020 involving 161,500 BTC, and other significant transactions ranging from $491 million to $1.033 billion throughout 2019 and 2020.

    Digital Assets

    Uniswap debuts Ethereum ‘uni.eth’ subdomains

    Decentralized exchange platform Uniswap has integrated Ethereum Name Service (ENS), allowing users to create human-readable domain names and cryptocurrency wallet addresses using .eth endings.

    Web3

    Magic Square Expands with TruePNL Acquisition

    Binance’s web3 app store, Magic Square, acquired token platform TruePNL in a cash deal this week for an undisclosed sum. The deal brings TruePNL’s infrastructure (excluding branding & token) under Magic Square’s wing. Initially seeking a partnership, Magic Square opted for a full acquisition.

    Crypto Insider

    The Future of Prediction Markets? Zeitgeist Launches Decentralized Court System

    Polkadot-powered prediction market protocol Zeitgeist has announced the launch of its latest innovation: a decentralized court system.

    Digital Assets

    Crypto exchange Kraken fires back at SEC lawsuit, claiming overreach

    Crypto exchange Kraken is pushing back against the U.S. Securities and Exchange Commission (SEC), seeking to toss out a lawsuit that accused the platform of operating without proper registration.

    Industry News

    Exness Named a Best Place to Work in 2024

     Global leader Exness, tops in retail trading volume, earns 2024 “Best Place to Work” award, cementing its employee-centric culture after three prior years of winning the Cyprus national title.

    Digital Assets

    Swan Bitcoin taps Bakkt for crypto offering in the US

    “We are thrilled to be taking this exciting step forward in our partnership with Swan. This is just the beginning of our collaboration, as we intend to explore further growth opportunities together in the future, including expansion into international markets.”

    Digital Assets

    Polkadot Awards Bifrost a 500,000 DOT Loan to Enhance Liquid Staking Adoption

    Bifrost, a leader in liquid staking solutions, has secured a 500,000 DOT loan from Polkadot’s treasury to expand the reach and utility of its vDOT product within the ecosystem.

    <