From August 2, French Binance customers will no longer be able to use certain trading products.
From August 2, the giant Binance will no longer allow its customers to perform certain trading operations. The company sent an email to French users on Wednesday, telling them of the news.
“While Binance is constantly evaluating its product and service offerings to comply with local regulations, we will be making changes to the following products for users living in France: futures, options, leveraged tokens, binance income (double investment),” explained Binance.
In fact, from August 2, French users will no longer be able to “add (their) positions or open new positions in these products”. They can “top up their margin balance to avoid margin calls and liquidation, or buy, reduce, and close any existing positions they may have,” Binance added.
“These are very complex financial instruments used by advanced or technical investors. Investors, corporations and governments use derivatives such as forwards or futures to hedge their exposure to risk. and fluctuations in asset prices,” Binance wrote on its blog to qualify futures contracts.
Contacted by BFM Crypto, a member of Binance France confirmed that the company will make changes to some products for users living in France.
“We actively and regularly review our product offerings and operations, based on user needs, changing regulatory criteria and future opportunities, to identify changes and improvements to be made,” explained a spokesperson from Binance.
“We are fully committed to the development of our industry and our priority is to satisfy our users by complying with local regulations”, he added.
Why did the cryptocurrency giant take such a decision? In early May, Binance obtained registration as a digital asset service provider (PSAN), becoming the 37th player to receive it from the Autorité des marchés financiers (AMF). In its communication, Binance explained that such a measure is necessary to adapt to French regulations. In fact, the sale of derivative products (including those with crypto-assets as an underlying) requires authorization as an investment service provider (ISP), which PSAN registration alone does not allow.
Until now, Binance, which claims 120 million customers, has not communicated the number of French customers. It is therefore difficult to know how many French people are currently affected by this move.
What are the consequences?
As a result, leveraged traders turn to other platforms. In addition, by cutting some services, Binance will generate less revenue.
For the founder of the special site Coin Academy, this decision by Binance may have an impact on other PSAN players.