Leading banking institutions and payment processors in the UK have begun to limit Binance transfersBinance, the world's leading cryptocurrency exchange, has suspended futures and derivatives products offerings across Europe, starting with Germany, Italy, and the Netherlands.

Announcing the move, it said it was “taking proactive steps” towards harmonising crypto regulations.

The move meant Binance users from these countries were prohibited from opening new futures or derivatives products accounts.

But why exactly it took such a drastic step in an important, growing market? And Why is it facing intense regulatory pressure and scrutiny around the world?Some countries have banned it and others have curtailed its operation.

Many others have warned it to cease its “illegal” operations on their territories.

Even in India, Binance-owned WazirX is under the radar of the Enforcement Directorate for alleged money laundering.

The ED is probing allegations that Chinese-operated betting apps laundered a portion of funds through WazirX.

The Indian exchange, however, said it is in compliance with all applicable laws.Additionally, leading banking institutions and payment processors in the UK have begun to limit transfers to and from Binance because of “excessively high fraud rates”.

The company is also said to be preparing to cut daily withdrawal limits from two Bitcoin to 0.06 BTC this month.

Despite recent efforts to appease regulators, Binance was forced to cease trading and support for stock tokens like Tesla and Coinbase.Earlier this year, the Thailand SEC filed a criminal complaint against Binance, while the Cayman Islands stated that the exchange was not allowed to conduct operations there.

And the latest to raise a red flag over its operations is the Dutch central bank, saying the company was found not in compliance with the anti-money laundering and anti-terrorist financing laws.

Binance is also being scrutinised by the US Justice Department and Internal Revenue Service.There are some questions about Finance as well.

For example, It's not clear where the company is based.

Its corporate structure is also surrounded by mystery, though it is led by a Canadian, Changpeng Zhao, known simply as "CZ".

A Binance spokesperson has said the company is "decentralised" and it "works with a number of regulated entities around the world".