The Spanish securities regulator, the CNMV, is pressuring crypto exchanges to stop offering cryptocurrency-linked derivatives in the country.
Binance, which is one of the biggest crypto exchanges in the world by volume, is one of the exchanges being pressured to drop the offer of cryptocurrency-related derivatives. This includes futures contracts for customers in Spain.
The main purpose behind this decision is to protect investors who use these products as investment tools. The Spanish regulator has previously warned about the dangers of derivatives and added that they make trading more complex and can also cause investors to lose more than the initial investment capital.
Binance has heeded the Spanish regulator’s warning and has withdrawn all their derivatives offerings from its investments page for Spanish users. The operations that were already open are being handled in the usual way as Binance waits for more feedback from the regulator.
Binance seems to be obeying the regulator’s orders as a way of getting the needed permits to establish its operations in Spain. The exchange is currently in regulatory limbo after being mentioned in a gray list that was published last year. Binance, however, has been in talks with the CNMV to get out of this limbo state and get approval from the Bank of Spain.
The exchange has been trying to get licenses from both the Bank of Spain and the securities regulator, but they have not received any answers yet.
The country manager of Binance in Spain, Alberto Ortiz, stated that “by joining the Bank of Spain registry we hope to encourage other firms to do the same.”
Other exchanges have already been licensed by the Bank of Spain of which Bit2me was the first.