Binance has a history of getting into regulatory trouble. Be it in the United States or in Singapore, Binance’s policies often conflict with regulatory policies. In a rather unexpected move, Binance UK is now making amends to their services and policies to keep regulators at bay. Binance.com stated that Binance UK will no longer offer crypto derivatives to users to not get into trouble with local authorities. Regional regulations prevent exchanges from offering crypto derivatives. Binance.com stated that the only reason behind this decision is to comply with regulations. On top of that, users will need to submit additional information to be eligible for leveraged tokens, futures, margin, options, and Binance EARN products.
However, customers of Biancne have expressed their anger on Twitter. Many said that Binance is deceiving their customers by declaring them ‘private investors’ without proper inquiry. Others feel that the exchange should consult its stakeholders before taking key decisions. Nonetheless, Binance sticks to its policies and shows no sign of bending.
In the last few months, Binance has visibly changed its business model. Unlike its previous aggressive policies, the new policies focus more on assimilation and compliance. For example, Binance recently withdrew its application to trade in digital assets in Singapore. It was later revealed that Binance is investing heavily in a firm that already has the necessary licenses from the Monetary Authority of Singapore. The present trend might help them perform better and get ahead of rival exchanges like Crypto.com and Coinbase.
