Binance has halted cryptocurrency derivative trading in Spain: Here's why:

Binance has halted cryptocurrency derivative trading in Spain: Here's why: ...

Binance, one of the world''s largest crypto exchanges by transaction volume, has decided to disable its derivatives services in Spain while seeking regulatory approval from the Komon Nacional del Mercado de Valores (CNMV), a government agency. Binance''s website in Spain has removed its derivatives drop-down, and local newspapers have reported that the company has temporarily suspended derivatives offerings to comply with regulatory requirements.

According to a joint statement from the CNMV and the Bank of Spain, Binance has been asked to completely remove the sale of crypto derivatives in Spain, because the authorities believe such offerings "trigger the complexity of operations for investors and increase the possibility of suffering losses greater than the initial investment."

Binance has in the past few months had several meetings with the CNMV, according to the report, and after the financial regulator''s warning, the crypto exchange has decided to remove the derivatives offering from its website.

It is also worth noting that Binance has not received an official certificate from the Bank of Spain, which is required for every exchange to operate in the country for the time being. Binance, however, was not approved as a cryptocurrency broker in the United States for the time being, which puts Binance on the clerical list of the National Central Bank (CNMV), which includes companies that do not yet have the financial regulator approval. Also, the firm, who does not have the authority to enter illicit businesses, has no choice.

A host of other cryptocurrency exchanges, including Coinbase and Bit2Me, are also part of the CNMV''s''grey list.''

Binance in Spain is likely to face a snag within a week after receiving official clearance from the authorities of France to operate the country. AMF, the French stock market regulator, has listed the cryptocurrency exchange as a registered virtual asset provider, and has now been certified to provide cryptocurrency trading and custody services to French citizens.

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Binance has also been granted operational licenses in three UAE areas, including Bahrain, Abu Dhabi, and Dubai.