Binance Halts Crypto Derivatives Offerings in Spain Following Regulatory Order
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Spain Orders Binance to Stop Offering Crypto Derivatives
According to a report from local media outlet, La Informac!on, Binance has complied with the regulator’s order to withdraw cryptocurrency-related derivatives, like futures contracts, for customers in the country.
The crypto platform is said to have withdrawn all derivatives services from Spain, preventing them from opening new operations.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.
The purpose of this measure is to protect investors. Reportedly, the regulator warned last year of the dangers of derivatives, saying they increase the complexity of trading operations and can also cause investors to lose even more.
The development comes a few days after Binance was approved by French regulators to operate in the country.
Binance's Regulatory Woes
Binance is yet to be approved by the National Securities Market Commission (CVMV) because it has not yet been secured an operational certificate from the Bank of Spain, forcing the crypto trading platform to continue to remain in the CNMV’s gray list.
Italy, Singapore, Canada, Thailand, Iran, etc., are among the other nations that placed restrictions on Binance’s activities within their countries.