Easy
Why are future contracts on Binance prohibited in France?
Since the summer of 2022, French users can no longer access future on Binance . These perpetual term contracts make it possible to bet on the increase ( long ) or the drop ( shorts ) of a cryptocurrency without having to hold it directly. Unlike conventional term contracts, they have no maturity date and operate with a financing mechanism (Funding Rate).
Not having the underlying asset means that the investor never really has the cryptocurrency concerned. It simply exchanges a contract which follows its price, which avoids the management of deposits and withdrawals of assets. In return, this implies paying financing rates : these costs are paid between traders depending on whether the buying (long) or saleswoman position (shorts) is in the majority, in order to align the price of the perpetual contract with that of the Spot market.
The prohibition of future in France is based on regulatory constraints and high risks linked to the leverage . To continue using these products, many traders turn to decentralized such as Drift , dYdX and Hyperliquid , accessible via a Crypto Wallet without central intermediaries.
Table of contents
Reasons for the ban on future Binance in France
French regulatory framework and its impact on Binance 's future
Binance was in the viewfinder of several regulators around the world, including the French authorities , due to the marketing of financial products deemed complex, such as perpetual contracts. These surveys did not question all of its activities, but they have strengthened the vigilance of regulators, in particular the AMF, faced with the dissemination of derivatives with leverage to the general public.
Perpetual contracts, used on Binance , differ from conventional term contracts by the absence of maturity date. This characteristic places them in a legal gray area : should they be treated as simple term contracts falling under the tax regime for digital assets, or as complex financial products requiring reinforced supervision? The AMF considers that they do not clearly enter the categories provided for by law, which makes their legal and tax status uncertain.
In the crosshairs of regulators: Binance Futures prohibited in France
Binance has been the subject of surveys in several countries, including France, due to the marketing of financial products deemed complex. These investigations have pushed the authorities, in particular the AMF, to strengthen their vigilance on derivative products such as perpetual contracts. Although this does not question all of the services offered by Binance, these products are now more strictly supervised.
Nature of perpetual contracts and tax issues for future Binance in France
Perpetual contracts, unlike conventional term contracts, have no due date. This particularity creates legal uncertainty : should they be assimilated to digital assets or complex financial products subject to more rigid regulations? The AMF considers that they do not clearly correspond to any defined category, making their legal and tax supervision delicate.
In addition to this, the Funding Rate mechanisms associated with these contracts can generate taxable financial flows, even without a position fence. This further complicates their tax treatment.
In this context of regulatory and fiscal insecurity , Binance preferred to suspend its perpetual contracts in France , so as not to risk sanctions or to violate an uncertain legal framework.
Binance Futures prohibited in France: the best alternatives to trader perpetual contracts
Decentralized platforms of perpetual contracts: Drift and dYdX
Drift and dYdX platforms allow you to trade perpetual contracts without going through a centralized platform like Binance . They operate thanks to smart contract S (autonomous programs on blockchain) which automatically manage orders, leverage and liquidity, without intermediary.
How do smart contractwork in perpetual trading?
Opening and management of positions
- A trader can open a long (bet on the rise) or shorts (bet on the drop).
- His order is recorded on the blockchain by a smart contract which ensures the smooth running of the trade.
Lever and margin effect
- These platforms make it possible to trader with a lever effect (example: 10x means that you bet 10 times more than your capital).
- A smart contract permanently checks if the trader has enough funds to cover his losses.
Automatic liquidation
- If the market evolves against the trader, and its balance becomes insufficient, the smart contract automatically firm its position to avoid excessive losses.
Funding rate (Funding Rate)
- As these contracts have no deadline , a funding rate is applied to maintain their price close to the real market (SPOT market).
- long traders pay traders shorts (or vice versa), depending on supply and demand.
Liquidity management
- Unlike centralized platforms , these platforms use liquidity pools (cryptos reserves provided by other users) to execute orders.
- Some also use an Order Book Hors-chain , like dYdX , to improve the speed of transactions.
Safety and transparency
- All transactions are recorded on the blockchain, which avoids manipulation and makes it possible to check all the actions in real time.
- The user remains master of his funds since he uses his own portfolio (Wallet) and not that of a platform.
Why are these platforms an alternative to Binance Futures?
They offer the same features (lever effect, shorts, fluid trading), but without central intermediary. Thanks to the DEFI (decentralized finance), they guarantee more transparency , control over its funds , and less risks linked to a platform that could block withdrawals or manipulate the market.
For a trader looking for an alternative to future Binance , these decentralized platforms are today the best option available.
Drift : Trading experience on Solana
How does Drift work?
Drift is an initially developed decentralized exchange Solana , a blockchain renowned for its speed and low transaction costs. The principle is quite simple: you connect your wallet , you drop the accepted cryptocurrency (often from the USDC on Solana ) and you can then take long or short positions on different pairs.
Drift advantages
- Drift is distinguished by an offer rich in more than 50 trading pairs , covering major cryptocurrencies such as BTC , ETH or Sol, but also many native tokens of the Solana .
- Trading fees are very competitive, with - 0.01 % for makers (you are paid to bring liquidity) and 0.1 % for maximum takers fuel loyalty program , which rewards users according to their activity on the platform.
- Drift offers return options thanks to loans/loans, providing liquidity as well as vaults.
- Drift also offers its BET prediction market, similar to Polymarket .
dYdX : the reference DEX for derivatives
How does dYdX work?
dYdX is often presented as a reference for trading of decentralized perpetual contracts . Initially launched on Ethereum , the protocol used a layer 2 to offer fast and low cost transactions. Since its transition to its own blockchain, dYdX Chain , based on the Cosmos , the protocol works in a even more decentralized way, with a model based on evidence (proof-of-stake) .
To start trading, simply connect a compatible wallet and supply your dYdX in USDC , the main stablecoin used on the platform. Users can then choose their lever , place long or short orders , and access a wide range of crypto pairs while benefiting from the advantages of decentralized finance (DEFI) .
For more details, we invite you to visit our article on how and how to use dYdX .
dYdX advantages
- dYdX combines the technical performance of a centralized exchange with the guarantees of transparency of the DEFI. Its main asset is its new sovereign blockchain ( dYdX Chain) , which allows it to ensure rapid execution of orders , an almost instantaneous purpose , and a fluid trading experience without network congestion.
- The platform offers more than 200 active perpetual markets , with leverage up to 50x on the main crypto pairs.
- Trading costs are particularly competitive (0.5 % max for Takers and 0.1 % for makers) , and can be reduced more depending on the volume exchanged or via staking DYDX token . Finally, the Cosmos environment allows dYdX to rely on a robust decentralized model , where network security is based on a set of independent validators, strengthening the autonomy and resilience of the protocol.
Binance Futures prohibited in France: main risks linked to the trading of future contracts in cryptocurrencies
Leverage and volatility
Cryptocurrencies are known for their very volatility . When you coupled this volatility with a lever effect , even moderate (for example X10), your potential gains may seem very attractive, but your potential losses can be just as brutal. It is not uncommon to see positions liquidated in a few minutes during sudden fluctuations on the market.
According to several studies, notably those carried out by various crypto analysis firms in 2021, the majority of traders lose their funds when they venture on derivatives with leverage.
Binance Futures prohibited in France: suspicions of illegal practices
Another factor having contributed to the ban on Binance in France lies in suspicions of money laundering and illegal practices surrounding the Binance . Regulators fear that these high volatility financial instruments can be used to hide fraudulent transactions. If Binance has always proclaimed its desire to cooperate with the authorities and to clean up its image, the current surveys have prompted the platform to strengthen its compliance procedures ( KYC , fight against money laundering, etc.).
In this context, the cessation of perpetual contracts could be perceived as a means of reassuring the authorities and avoiding more severe sanctions. The surveys have not yet resulted in a clear outcome, and Binance actively affirms to actively work on the establishment of regulatory safeguards capable of convincing the AMF and the other European regulators.
Binance Futures prohibited in France: What are the impacts for French traders?
Decrease in the supply of derivative products
The main impact for traders residing in France is the loss of a appreciated tool to speculate upwards or downwards. Perpetual contracts make it possible to bet on a lower (short position) or upward (long position) trend with a significant lever effect The end of this offer forces many speculators to review their strategies or migrate to other platforms.
Search for alternatives
Faced with the impossibility of using Binance Futures in France, many traders are now turning to decentralized platforms Drift and dYdX . Before taking the plunge, it is crucial to understand precisely the risks involved, the reliability of the platform and the way in which the decentralized wallet
For this we offer our free guide to learn how to use a decentralized wallet, step by step, supporting screenshots.
What you will learn:
✔ Master a decentralized portfolio ( DEFI ) - Learn to manage your assets without intermediary and to interact directly with the blockchain.
✔ Perform transactions via a decentralized wallet - a practical guide to exchange cryptos independently.
✔ Explore decentralized finance (DEFI) - Discover advanced concepts such as staking and NFT , and optimize your investment strategies.
📥 Download the guide freely by filling out the form below:
Conclusion: What alternatives after the ban on future Binance in France?
The prohibition of perpetual contracts on Binance in France regulatory and tax constraints to legally propose derivatives with leverage.
Fortunately, alternatives exist thanks to decentralized exchanges like Drift and dYdX . These platforms make it possible to trader perpetual contracts by remaining master of its funds, without going through a centralized intermediary. With transparent mechanisms based on smart contract , they offer a robust alternative to CEX, while ensuring free and non -censurable access to markets.
The evolution of regulations in France and in Europe could redefine the legal framework of derivative products on crypto in the years to come. In the meantime, Dex specialized in perpetuals remain the best options for French traders seeking to speculate on the increase or the drop in the Crypto market without centralized restrictions .
Investments in cryptocurrencies are risky. Crypternon could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a property or service put forward in this article. Readers must do their own research before undertaking any action and investing only within the limits of their financial capacities. Past performance does not guarantee future results. This article does not constitute an investment .
Certain links of this article are sponsorship links, which means that if you buy a product or you register via these links, we will collect a commission on the part of the sponsored company. These commissions do not train any additional cost for you as a user and certain sponsorships allow you to access promotions.
AMF recommendations. There is no guaranteed high yield, a product with high performance potential implies a high risk. This risk taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital .
To go further, read our pages legal notices , privacy policy and general conditions of use .
Noah
Training engineer, I quickly became interested in the field of finance. Convinced that decentralized finance has a bright future ahead of it, I participate in its democratization by developing Crypternon.
