The latest move comes off the back of regulatory pressure from Brazil. Binance has moved to suspend trading of futures contracts on its Brazilian platform from Friday in order to comply with local regulations in the country.
According to a spokesperson at Binance, the move comes directly from an order related to the Brazilian regulators, “To respect the Brazilian order, Binance implemented restrictions on our website and stopped marketing on the derivatives products. If there are new changes, we will evaluate and proactively engage with the relevant stakeholders to find the optimal solutions for the local users. We will share more information if and when we have a decision and are ready to announce,” the spokesperson said.
Brazil looking to efficiently regulate crypto industry
Most recently, the Brazilian Central Bank President, Roberto Campos Neto, commented on the crypto industry, stating that local regulations should facilitate investors’ demand for cryptocurrencies. Neto believes that cryptocurrencies will play a large role in payment platforms. The Central Bank President believes that the industry is key to the growth of digital payments within the country, saying “This comes out of a need that people have for payments to be very fast, open, secure, and have transparency in every sense,”
Binance continues to clamp down
The latest move in Brazil comes as no surprise. Binance has been actively reducing its product offering following backlash from global regulatory bodies across the globe. The crypto exchange most recently announced that all users will be required to verify themselves through the exchange in order to make use of its services. The announcement stated that the move was to “further enhance user protection.” The latest move is a clear indication that the exchange is pushing for global adoption and regulatory-friendly conditions in order to continue operating on a global scale.