Spanish Securities Regulator Orders Binance to Stop Offering Cryptocurrency Derivatives – The Spanish securities regulator, the CNMV, is placing increasing pressure on exchanges in the country who offer cryptocurrency-linked futures. According to local media, Binance, one of the world’s largest exchanges by volume traded, has been ordered to stop offering cryptocurrency-related derivatives, such as futures contracts, to consumers in the country.
The measure’s stated goal is to protect investors who use such instruments as investment vehicles. Last year, the regulator issued a warning about the dangers of derivatives, claiming that they increase the complexity of trading operations and can cause investors to lose even more money than they invested.
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For Spanish users, Binance has apparently removed all of its derivatives offers from its investments website, prohibiting them from starting new businesses. However, existing activities are being kept in the same state as the exchange waits for more information from the regulator.
Binance is following the Spanish regulator’s instructions in order to obtain the necessary permits to operate in the country. The exchange is now in regulatory uncertainty, having been listed in a gray list issued last year alongside many other cryptocurrency exchanges that operate in Spain. Binance has been in talks with the CNMV to get out of this current situation and obtain Bank of Spain permission.
Since January, the exchange has been in talks with the Bank of Spain and the securities authority to get licenses, but neither has responded positively as of this writing. Alberto Ortiz, Binance’s national manager in Spain, said at the time:
“We anticipate that by joining the Bank of Spain registry, more businesses will follow suit.”
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Spanish Securities Regulator Orders Binance to Stop Offering Cryptocurrency Derivatives – The Bank of Spain, on the other hand, has previously approved other exchanges. The first to get this license was Bit2me, a local exchange, and others have since followed.