Binance Temporarily Stops Derivatives Service To Meet Terms In Spain

Binance has always been persistent in seeking a license to operate. (photo: doc. binance.com)

JAKARTA - Binance is known as one of the most persistent crypto exchanges when it comes to obtaining regulatory approvals and operational licenses from regulators around the world.

In an effort to operate as a fully licensed financial institution, they have stopped offering crypto derivatives services in Spain as they are reportedly awaiting approval from the Spanish regulator, Comisión Nacional del Mercado de Valores (CNMV).

As evidenced by the official Spanish website Binance, this crypto exchange removed the derivatives drop-down menu, which is still available in the global version.

According to local news publication La Información, the move is to hide the derivative offerings in Spain that usually appear, as a way to comply with requirements set by CNMV, known as the National Securities Market Commission.

Binance's intention to offer services can only be after CNMV's approval. As Cointelegraph reports, Binance URLs associated with derivative offerings in Spain — including futures, battles, and derivatives portals — are still active.

However, local media reports suggest that Binance will reintroduce derivative options only after receiving the regulatory green light in the form of a certificate of guarantee from the Bank of Spain (BdE).

In June 2021, Binance CEO Changpeng Zhao revealed plans to accelerate the growth of the crypto exchange by working closely with regulators, stating:

“We want to have licenses everywhere. From now on, we will be a financial institution,” said CZ.

Binance, along with other crypto exchanges such as Coinbase and Bit2Me, are listed on a “grey list” on CNMV, which prohibits the organization from operating as a fully licensed entity in the region.

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

As Cointelegraph reports, the move to France signals Binance's latest expansion of its global operations, having obtained in-principle approval to operate in Abu Dhabi in April.

Citing regulatory approvals in France, Binance shared plans to significantly scale up its operations in the region while pursuing “further infrastructure development.”