The Spanish securities regulator, the CNMV, has ordered the Binance platform to stop offering crypto-derivative products to customers in the country. According to local media, the crypto-exchange giant has followed the regulator’s orders, withdrawing these products from its customers in Spain.
Spanish Securities Regulator Sets His Eye on Binance
CNMV, the Spanish securities regulator, is putting more pressure on exchanges that offer crypto-related derivatives in the country. Binance, one of the world’s largest exchanges by trading volume, has been asked to drop offering crypto-related derivatives, such as futures, to customers in the country, according to local media.
The purpose of this measure is ostensibly to protect investors by using such products as investment vehicles. The regulator warned last year of the risks of derivatives, saying they complicate trading operations, and could also cause investors to lose more than their initial investment capital.
Binance is said to have pulled all its derivative offerings from its investment page for Spanish users, preventing them from opening new operations. However, processes that were already open are kept in the same state, as the exchange awaits further feedback from the regulator.
Binance is following the orders of the Spanish regulator as a way to obtain the necessary permits to establish its operations in the country. Currently, the exchange is in a regulatory stalemate, as it was mentioned in a gray list published last year with several cryptocurrency exchanges also operating in Spain. However, Binance is in talks with the CNMV to exit this current situation and obtain approval from the Bank of Spain.
The exchange has been in talks to obtain licenses from the Bank of Spain and the securities regulator since January, but there has been no positive response from either at the time of writing. At the time, Alberto Ortiz, Country Director of Binance in Spain announced:
By joining the Bank of Spain’s registry, we hope to encourage other companies to follow suit.
However, the green light for other exchanges has already been given by the Bank of Spain. Bit2me, a local exchange, was the first to obtain this license, and others have followed since then.
What do you think of the CNMV restriction on Binance in Spain? Tell us in the comments section below.
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