The CNMV, Spain’s securities regulator, is putting pressure on cryptocurrency exchanges to stop trading cryptocurrency-linked derivatives in the nation.
Binance, one of the world’s largest crypto exchanges by volume, is among those under pressure to discontinue offering cryptocurrency-related futures. This covers futures contracts for Spanish consumers.
The major goal underlying this decision is to protect investors who utilise these products as investing vehicles. The Spanish regulator has previously cautioned about the risks of derivatives, stating that they complicate trading and can cause investors to lose more than their initial investment cash.
Binance has taken note of the Spanish regulator’s warning and removed all derivatives products from its investments website for Spanish users. The activities that were already open are being handled in the usual way as Binance waits for additional feedback from the regulator.
Binance appears to be following the regulator’s directives in order to obtain the necessary licences to operate in Spain. After being featured on a grey list issued last year, the exchange is presently in regulatory limbo. Binance, on the other hand, has been in negotiations with the CNMV in order to move out of this limbo and gain clearance from the Bank of Spain.
The exchange has attempted to get licences from both the Bank of Spain and the securities authority, but has yet to receive a response.
Alberto Ortiz, Binance’s national manager in Spain, claimed that “by joining the Bank of Spain register, we want to inspire other enterprises to do the same.” Other exchanges, like Bit2me, have previously been approved by the Bank of Spain.