By Alicia Maher
Binance futures derivatives market has experienced an influx of investors and liquidity into it. This is clearly an indication of investors’ confidence in the space as they approach the main cryptocurrency market with skepticism and fear. In essence, the futures derivatives market seems like respite for them against the raging volatility in the spot market currently. The trading volume on Binance Futures market has surged as well.
Truly, this is one fortune out of the many calamities that have befallen the leading crypto exchange since the start of the year. Binance has been wading through a sea filled with regulatory sharks as it tries to evade impending axes from different angles. The exchange has a number of allegations from regulatory bodies hanging on its neck- money laundering, unlicensed service offerings, and tax evasion. On Monday, a major bank in the UK, Barclays Bank closed the door to the exchange on its services. This means that UK residents are no longer allowed to make deposits or withdrawals through the bank to and from Binance.
Binance Faces Regulations Sharks in Different Regions
Binance Exchange was the subject of a number of regulatory actions from different bodies. The exchange faced queries from regulatory authorities in Japan, Cayman Islands, Ontario, Thailand, including the UK. The UK Financial Conduct Authority (FCA) queried Binance for running its operations in the country without a license. Binance responded by saying it was not offering trading services in the UK. On that basis, the exchange shut down operations in the country.
US regulators are also holding Binance by the scruff of the neck for tax evasion and money laundering, in contravention of tax laws and AML guidelines, respectively. Meanwhile, experts noted that the crypto platform has flourished due to lack of governmental control. However, if Binance wants to continue its operations in some of these countries, then it would have to abide by extant regulations such as registering with a regulatory body. It was accused of evading registration requirements by Thailand’s SEC.
Binance Dismiss Claims of Stopping Trading Services
Amid all the regulations brouhaha it is embroiled in, Binance issued a notice claiming none of these incidents has directly affected its trading services. The next few months are unpredictable for the exchange as the pressure mounts. Notwithstanding, Binance still remains the favorite of most investors and traders due to the extensive trading options it offers.
According to Arcane Research’s data, Binance has dominated the Bitcoin Futures market with many futures traders using the volatility in the market to their utmost advantage. Binance’s futures market dominance in relation to Bitcoin is represented by 25%.
According to reports, futures derivatives activities on Bitcoin leaped from $2.5 billion to $4 billion within January. In a related development, Binance is facing a class action from a group of futures traders for causing their funds to get liquidated in February. The traders threatened to petition the EU and other bodies to sanction the exchange. Binance was given until July 12 to compensate the affected parties.
HeraldSheets.com produces top quality content for crypto companies. We provide brand exposure for hundreds of companies. All of our clients appreciate our services. If you have any questions you may contact us. Cryptocurrencies and Digital tokens are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by our authors and the views expressed in them do not reflect the views of this website. Herald Sheets is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Read full terms and conditions / disclaimer.