As of August 2, Binance’s French clients will no longer be able to use certain trading products.
From 2 August, the giant Binance will no longer allow its customers to carry out certain trading operations. The company sent an email to its French users on Wednesday, telling them the news.
“As Binance is constantly re-evaluating its product and service offerings to comply with local regulations, we will make changes to the following products for users residing in France: futures, options, leveraged tokens, binance gain (double investment),” Binance explained.
From 2 August, in fact, French users will no longer be able to “increase (their) positions or open new positions on these products”. They will be able to “replenish their margin balance to avoid margin calls and liquidations, or repurchase, reduce and close any existing positions they may have,” adds Binance.
“These are very complex financial instruments used by advanced or technical investors. Investors, corporations and governments use derivatives such as forward or futures contracts to hedge their exposure to risk and asset price volatility,” Binance wrote in the paper. his blog to qualify futures contracts.
Contacted by BFM Crypto, a member of Binance France confirms that the company will make changes to certain products for users residing in France.
“We proactively and continuously review our product offerings and operations, based on user demand, evolving regulatory criteria, and future opportunities, to determine what changes and improvements need to be made,” explains a Binance spokesperson.
“We are fully committed to the development of our industry and our priority is to satisfy our users by respecting local regulations,” he adds.
Why did the cryptocurrency giant make such a decision? In early May, Binance gained registration as a digital asset service provider (PSAN), becoming the 37th player to receive it from the Autorité des marchés financiers (AMF). In his communication, Binance explains that he takes this measure to comply with French regulations. Indeed, the sale of derivative products (including those with cryptocurrencies as underlying) requires an authorization as an investment service provider (ISP), which PSAN registration alone does not allow.
So far, Binance, which boasts 120 million customers, has never disclosed the number of French customers. It is therefore difficult to know how many French people are currently affected by this measure.
What are the consequences?
As a result, leveraged traders will turn to other platforms. Additionally, by cutting some services, Binance will generate less revenue.
For the founder of the specialty site Coin Academy, this decision by Binance could impact other PSAN players.