Binance reportedly halts crypto derivatives service in Spain

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Binance reportedly halts crypto derivatives service in Spain

Binance stands as one of the most persistent crypto exchanges when it comes to gaining regulatory approval and operational licenses from regulators across the world. In this effort to operate as a fully licensed financial institution, the exchange has stopped offering it’s crypto derivatives services in Spain as it reportedly awaits approval from the Spanish regulator, Comisión Nacional del Mercado de Valores (CNMV).

As evidenced by Binance’s official Spanish website, the crypto exchange removed the derivatives drop-down menu, which is still available on the global version. According to local news publication La Información, the move to hide derivatives offering in Spain comes as a way to comply with the requirements set by CNMV, a.k.a. the National Securities Market Commission.

Navigation menu on Binance Spanish (top) and global (bottom) versions. Source: Binance

The screenshot above shows the missing ‘Derivatives’ option from the Spanish version, which is evidently available in the global version. While the screenshot confirms Binance’s intent to offer services only upon regulatory approval, further investigation from Cointelegraph confirmed that the URLs related to derivative offerings in Spain — including futures, battle and derivative portal — remain active.

Active derivatives portal on Binance Spain version. Source: Binance

However, the local report suggested that Binance will reintroduce the derivatives option only after receiving the regulatory green light in the form of a guarantee certificate from the Bank of Spain (BdE). 

In June 2021, Binance CEO Changpeng Zhao revealed plans to expedite the crypto exchange’s growth by working with the regulators, stating:

“We want to be licensed everywhere. From now on, we’re going to be a financial institution.”

Binance, along with other crypto exchanges like Coinbase and Bit2Me, is listed in CNMV’s ‘gray list,’ which prohibits organizations from operating as fully licensed entities in the region.

Related: France’s financial authority approves Binance’s registration as digital asset service provider

Despite the minor setback faced due to regulatory delays in Spain, financial authority from the neighboring country of France — Autorité des marchés financiers (AMF) — approved Binance as a registered digital asset service provider.

As Cointelegraph reported, the move into France signaled Binance’s latest expansion of its global operations, having obtained in-principle approval to operate in Abu Dhabi in April. Citing the regulatory approval in France, Binance shared plans to significantly scale its operations in the region while pursuing “further infrastructure development.”