Spanish regulator orders Binance to cease offering crypto derivatives

• Binance has dropped its crypto derivative offerings in Spain as it is yet to be 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 told by the securities regulator in Spain, the Comisión Nacional del Mercado de Valores (CNMV),  to stop offering customers its crypto derivatives products, as per 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 been seeking approval, and the move to comply with the order is part of the exchange’s efforts to woo the regulator. The regulator, on past occasions, warned against crypto derivatives such as futures contracts, which it considers risky for the investor. The bank says that the complexity of trading leaves the investor exposed to the possibility 0f losing more than the initial amount they invest.

With the exchange halting derivatives offering, no users will be allowed to establish new operations. However, those positions that had already been set were retained in the same state, awaiting communication from the regulator. It was also reported that Binance might yet restore the same once it has been licensed.

As of now, Binance remains in the ‘Gray List,’ which names crypto entities that are not fully licensed to operate in Spain. This list, published by the CNMV, also features other top crypto exchanges, including Coinbase.

Binance’s inclusion has, to some extent, put a damper on its expansion strategy. The giant crypto dealer has been attempting to get off the list, in addition to hunting such status as fellow exchange Bit2me, which was the first approved virtual asset service provider in the country.

Binance explores legal action against fraudulent ad

Binance TR, the Turkish arm of Binance, has flagged a fake advertisement that appears to mislead customers. Attaching an image of the said advertisement billboard on Twitter, Binance TR noted that there has been a spike in such misleading ads in recent days, though they are entirely unrelated to the exchange. 

Owing to the exchange’s popularity in Turkey, the ads are Binance-themed to hoodwink the unknowing user into dealing with crypto scammers. The exchange is intent on pursuing legal action, it said.

“For a while, billboards similar to the image below have been striking in different regions of Turkey. The image below has nothing to do with Binance. Necessary legal processes have been initiated against persons who are clearly involved in fraudulent activities,” the tweet read.