Binance stops Cryptocurrency derivatives trading in Spain: details

Binance stops Cryptocurrency derivatives trading in Spain: details

The largest Cryptocurrency exchange Binance reported that the trading of Crypto derivatives in Spain has been stopped. This function will be available again only after the platform will receive official permission from the National Securities Market Commission – a certificate of guarantee.

Such a decision was made in connection with the implementation of the main goal, which was set by the exchange. Thus, Binance intends to become a fully licensed financial institution. For that, the trading platform must have documented regulatory approvals to conduct its operations in all the countries where Binance’s website is available.

Based on the official statement of the exchange, the corresponding application for a license to trade “Cryptocurrency derivatives” has already been submitted. At the moment, the platform is waiting for a positive response from the Spanish regulator – Comisión Nacional del Mercado de Valores (CNMV).

In connection with the plans of Binance to fundamentally change the policy of its activities, the Spanish website trading platform yesterday was removed from the drop-down menu with derivatives. According to local business publication La Información, the measures taken by Binance are aimed entirely at complying with CNMV requirements.

Cointelegraph research shows that the derivatives section of Binance’s global site is still active. As for the Spanish version of Binance, all the addresses and links regarding “derivative Cryptocurrencies” are also working, they have not been removed. This, experts say, only confirms that the shutdown of one of the platform’s services is temporary.

In this context, it is worth mentioning how Binance CEO Changpeng Zhao said back in 2021 about significant changes in the future.

“From now on, our first priority is to get licenses everywhere. Binance will now be a full-fledged financial institution”

zhao noted

Despite such a high level of insistence on obtaining licenses and complying with all regulatory requirements, experts doubt that Binance will be able to get the necessary approval in Spain to resume crypto derivatives trading. According to analysts, Binance, along with other “colleagues in the shop” – Coinbase and Bit2Me, included in the so-called “gray list” of the Securities Trading Commission. This means that Binance is on the list of organizations that are banned from operating in the region as fully licensed companies. Thus, it remains questionable whether the regulator will issue a certificate to the exchange, and whether it, in turn, will restore Crypto derivatives trading.

Recall, earlier we reported that the trading platform Binance became one of the main co-investors of Ilon Musk in his purchase of the social network Twitter.

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Written by Renat
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