Binance complies with the requirements of the Spanish regulator in order to obtain a license to operate in the country. The exchange was forced to stop offering cryptocurrency derivatives to Spanish users.
how informs La Informacion, the National Securities Market Commission (CNMV), the Spanish securities regulator, is putting a lot of pressure on exchanges offering cryptocurrency derivatives to their clients. This time, the regulator set its sights on the largest crypto exchange Binance – the site was forced to stop offering cryptocurrency derivatives in Spain.
The main purpose of such a measure, according to CNMV, is to protect investors who use derivatives as investment vehicles. Last year, the regulator warned investors about the dangers of derivatives, citing the fact that they complicate trading operations and can lead to significant monetary losses. At the same time, CNMV did not explain whether the new rules could change in the future and what to do for investors who are willing to take risks.
Binance has withdrawn all of its derivatives offerings for Spanish users, however, operations already open are still operational. Currently, Binance is conducting unofficial activities in Spain and is rather in a gray area until the regulators made an unequivocal decision on this issue. The exchange is in talks with CNMV to get out of limbo and get approval from the Bank of Spain. Therefore, the company is ready to comply with any requirements of the authorities.
At the beginning of the year, the Spanish Ministry of Finance announced that it was postponing the development of rules for declaring income from operations with cryptocurrencies until next year. One of the reasons was the inability to reliably verify information about transactions with digital currencies.
Source: Bits
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
