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Spain Orders Binance to Stop Offering Crypto Derivatives

The Spanish securities regulator, CNMV, has asked Binance to stop offering crypto derivatives products to domestic customers.

According to local media, the crypto exchange giant has complied with the regulator’s order to withdraw these products from Spain.

CNMV, the Spanish securities regulator, is putting more pressure on crypto exchanges in the country. Binance, one of the world’s largest exchanges, has been asked to give up offering crypto-related derivatives products, such as futures contracts, to domestic customers.

The purpose of this measure is to protect investors. Last year, the regulator warned of the dangers of derivatives, saying they increase the complexity of trading operations and can also cause investors to lose even more. initial investment amount.

Binance is said to have withdrawn all derivatives services from Spain, preventing them from opening new operations. However, other operations are still being maintained, as the exchange is awaiting further response from the regulator.

Binance is following an order from the Spanish regulator as a way to get the necessary licenses in the country.

However, Binance negotiated with CNMV to get rid of the unclear regulatory status and get approval from the Bank of Spain.

The exchange has been negotiating to obtain a license from the Bank of Spain and the securities regulator since January, but has yet to receive an answer from either side.

However, other exchanges have been given the green light by the Central Bank of Spain. Bit2me, a local exchange, was the first to receive this license.