Spanish securities regulator, CNMV, ordered Binance to cease offering crypto derivative products to Spanish customers. Local media reports that the cryptocurrency exchange giant, Binance, has complied with the order of Spanish regulators and has pulled these products from customers in Spain.
Spanish Securities Regulator Has Eyes on Binance
The CNMV, which is the Spanish securities regulator, is putting more pressure on exchanges offering cryptocurrency-linked derivatives in the country. Binance, one of the biggest exchanges in the world by volume traded, has been required to drop the offer of cryptocurrency-related derivatives, like futures contracts, for customers in the country, according to local media.
The measure’s purpose is to protect investment-tool users who are using derivatives. Last year, the regulator raised concerns about derivatives. They increase complexity in trading and can lead to investors losing more than their initial capital.
Binance has apparently removed all derivatives from the investments page for Spanish-speaking users. This prevents them from opening any new operations. The existing open operations are still being operated as they wait for more information from the regulator.
Gray List
Binance has been following Spanish regulations to get the permits it needs in order to set up operations here. The current regulatory status of the exchange leaves it in regulatory uncertainty. It was included in a grey list published last year that includes several crypto exchanges in Spain. Binance, however, has been in discussions with the CNMV to escape this state and receive approval from Bank of Spain.
Since January, the exchange had been trying to obtain licenses from both the Bank of Spain (the securities regulator) but has yet to receive a positive response. Alberto Ortiz in Spain was country manager at Binance.
We hope that other companies will join the Bank of Spain Registry.
Bank of Spain already has approved several other exchanges. Bit2me (a local exchange) was the first to get this license. Others have followed suit.
How do you feel about Spain’s CNMV restriction on Binance? Leave a comment below.
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