Binance suspends derivatives services in Spain

Binance
TL;DR Breakdown
  • Binance suspends derivatives options in Spain
  • The regulatory body wants Binance to adhere to its rules
  • Binance plans massive growth with licenses

Binance has announced that it has suspended its derivatives services across Spain following an order by regulatory authorities. The exchange has become one of the most hardworking exchanges in recent months regarding regulatory approval. This is why it has continued to bag licenses upon licenses of operations in countries worldwide since the start of the year. However, this new update comes after the company’s plans to earn a full operation license from the Spanish agency CNMV.

CNMV wants Binance to adhere to its guidelines

The Comisión Nacional del Mercado de Valores is the body in charge of granting crypto exchanges and related companies with such licenses. Evidence of the suspension of the service is the removal of the derivatives option on its Spanish website. However, traders in other parts of the world where derivates trading is supported can still enjoy the services. According to several sources across Spain, this new move came after the company announced that it was going to do all it takes to adhere to the regulatory guidelines of the CNMV to gain its full-fledged license.

Aside from the removal of derivatives, the Spanish website also has a notice where the company states that all its listed products are in line with the regulatory body’s requirements. Although the evidence shows that the service is suspended, there are still rumors that the company allows users to leverage services like futures to make money.

Binance plans massive growth with licenses

According to the report, Binance can only add the derivatives tab to its website after the commission has granted its license to carry out its operations. The firm would earn a green certificate from the premier bank in Spain, provided to authorities upon asking. Last year, Changpeng Zhao mentioned that his company would work with regulators worldwide to help it grow significantly. In his statement, he noted that the company wants to be accepted everywhere, which means they must earn a license to operate if they are to operate in a specific part of the world.

Asides from Binance, Coinbase and some other crypto entities are also undergoing the same tough stance by the regulator. Although the company is still trying to gain a license to operate in Spain fully, the same is not the case in France, where it just won a license to provide services to residents. Binance has been working tirelessly, going by several licenses it earned over the last few months.

Owotunse Adebayo

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

Related News