A Structured Return: Binance Reintroduces Futures Products in the French Market
Binance is orchestrating a structured return of its ‘futures’ products in the French market. Following a mandatory withdrawal in spring 2022, the company is diligently working to obtain the necessary approvals from the Autorité des marchés financiers (AMF). This reintroduction is in response to the strong demand from French users eagerly awaiting the return of these investment products.
A Strategic Change Despite Challenges
In August 2022, in accordance with the AMF regulations to obtain the status of a digital asset service provider (PSAN), Binance withdrew its derivative products from the French market. Despite anticipating a successful comeback, ongoing investigations in the United States could potentially delay the relaunch. However, an internal source at Binance has assured us of their relentless efforts to reintroduce futures under satisfactory regulatory and user protection conditions.
Adapting to the Demands of a Dynamic Market
Futures contracts, complex financial products that allow traders to hedge against market fluctuations, have found increased utility in the crypto sphere. They are frequently used by investors to speculate on market trends, sometimes utilizing leverage up to 125 times the initial investment. The previous insistence by the AMF to remove these products from the market was an attempt to protect novice investors from unpredictable financial repercussions.
Learning from the Past: The Path Towards a More Structured Approach
In the aftermath of the 2022 mandate, Binance has taken strategic measures to reintroduce futures in a more structured manner, aiming to protect investors from the negative impacts observed in the past. Having established a dedicated branch, Binance Futures, in May 2022, the company also filed an application for the investment services provider agreement (PSIC) in September 2022. This step is crucial for Binance France, as futures contracts are regarded as traditional investment products. Despite significant losses suffered by clients, particularly with the FTY platform that went bankrupt amid one of the largest scandals in history, Binance is determined to restore order in the futures segment, albeit with structured planning and strict regulations.
