- May 27, 2022
Binance Discontinues Offering of Crypto Derivatives in Spain
- Binance has stopped offering crypto derivatives in Spain as it is not yet fully licensed in the country
- Elsewhere, Binance Turkey is taking legal action against fake ads
The largest cryptocurrency exchange by trading volume, Binance, has been ordered by the securities regulator in Spain, the Comisión Nacional del Mercado de Valores (CNMV), to stop offering its crypto derivative products to customers, according to local reports. The trading platform has since removed the option for the crypto derivatives from its website, effectively preventing users from creating new operations.
Binance has applied for a permit, and the move to comply with the order is part of the exchange’s efforts to woo the regulator. The regulator has warned in the past about crypto derivatives, such as futures contracts, which it considers risky for the investor. The bank says that the complexity of trading exposes the investor to the possibility of losing more than the originally invested amount.
With the offer of exchange-interrupted derivatives, users are not allowed to build new deals. However, the already discontinued positions were kept in the same condition and were waiting for the notification of the regulator. It has also been reported that Binance may still restore this after licensing.
As of now, Binance remains on the “gray list”, which lists crypto entities that are not fully licensed to operate in Spain. This list published by the CNMV also includes other top crypto exchanges, including Coinbase.
The inclusion of Binance has to some extent put a damper on its expansion strategy. The giant crypto trader has tried to be removed from the list, in addition to chasing the status of fellow exchange Bit2me, which was the first approved provider of virtual asset services in the country.
Binance is considering legal action against fraudulent advertising
Binance TR, the Turkish branch of Binance, has reported a fake advertisement that seems to mislead customers. Binance TR added an image of the said billboard on Twitter, noting that there has been an increase in such misleading ads in recent days, although they have nothing to do with the exchange at all.
Due to the popularity of the exchange in Turkey, the ads are targeted at Binance to trick the ignorant user into getting involved with crypto scammers. The exchange intends to take legal action, it said.
“For some time now, posters similar to the picture below have been flaunting in various regions of Turkey. The picture below has nothing to do with Binance. Necessary legal action has been taken against persons who are clearly involved in fraudulent activities“, it is stated in the Tweet.