• The Spanish securities regulator, the CNMV, is pressuring crypto exchanges to stop offering cryptocurrency-linked derivatives.
• This decision was made to safeguard investors using these products for investment purposes.
• Binance has heeded the Spanish regulator’s warning and has withdrawn all their derivatives offerings from its investments page.

The Spanish securities regulator, the CNMV, is pressuring crypto exchanges to stop offering cryptocurrency-linked derivatives in the country.

Binance, which is one of the biggest crypto exchanges in the world by volume, is one of the exchanges being pressured to drop the offer of cryptocurrency-related derivatives. These futures contracts are available to customers from Spain.

This is a decision to help investors use derivatives as an investment tool. Spanish regulators have warned of the risks associated with derivatives. They also stated that these products can make trading more complicated and could cause investors to lose greater than their initial capital.

Binance has heeded the Spanish regulator’s warning and has withdrawn all their derivatives offerings from its investments page for Spanish users. Binance awaits further feedback about the operation that was already opened.

Binance seems to be obeying the regulator’s orders as a way of getting the needed permits to establish its operations in Spain. After being included in the gray list published last year, Binance is now in regulatory uncertainty. Binance is in negotiations with the CNMV for a way out of this limbo to obtain approval from Bank of Spain.

Although the exchange tried to obtain licenses from the Bank of Spain as well the Securities Regulator, they still haven’t received answers.

The country manager of Binance in Spain, Alberto Ortiz, stated that “by joining the Bank of Spain registry we hope to encourage other firms to do the same.”

The Bank of Spain has already licensed other exchanges, Bit2me being the first.

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