Binance, one of the world’s largest crypto exchanges by transaction volume, has decided to disable its derivatives services in Spain while it seeks regulatory approval from the Comisión Nacional del Mercado de Valores (CNMV), a government agency responsible for the financial regulation of securities markets in Spain the country is responsible. Binance’s website in Spain has removed the derivatives drop-down menu and local newspapers are reporting that the company has temporarily suspended offering derivatives to comply with regulations and eligibility criteria set by the government agency.
According to a report by local Spanish news outlet La Informacion, Binance has been urged to stop selling crypto derivatives in Spain entirely, as authorities believe such offerings “increase the complexity of operations for investors and increase the possibility of incurring losses of initial investment,” according to a joint statement by CNMV and Banco de España – the country’s central bank.
The report adds that Binance has held several meetings with CNMV officials so far in recent months and the crypto exchange has decided to stop offering derivatives from its website following the financial regulator’s warning.
It is also worth noting that Binance has not received an official certificate from the Bank of Spain, which is required for any exchange to operate within the country. The company applied for the same in January, but has not been approved as a crypto broker in the US for now, meaning Binance is on the CNMV’s “grey list,” which includes those firms that don’t yet have the confirmation of the Financial Regulator, but that too cannot be classified as illegal business.
A host of other crypto exchanges, including Coinbase and Bit2Me, are also part of CNMV’s “grey list.”
The move presents a minor hurdle for Binance in Spain, within a week of receiving official approvals from French authorities to operate in the country. The cryptocurrency exchange was listed by AMF, the stock exchange regulator of France, as a registered virtual asset service provider and is now authorized to offer crypto trading and custody services for crypto assets such as bitcoin and ether to French citizens.
Meanwhile, Binance also has operating licenses in three regions of the United Arab Emirates, including Bahrain, Abu Dhabi, and Dubai.
https://gadgets360.com/cryptocurrency/news/binance-crypto-regulation-spain-cnmv-securities-derivatives-2959134 Binance Has Stopped Trading Crypto Derivatives In Spain: Here’s Why