The world’s largest crypto exchange, Binance, faces another hurdle as it attempts to enter the European market further as renewed pressure from Spanish regulators keeps getting in the way.
As was reported by local news agencies, Spain’s financial market regulator, the National Securities Market Commission (CNMV), has directed Binance to wrap up its crypto services in the country.
The latest development came on the heels of the positive regulatory outcome in France, where Binance was given official approval. After much vetting, French regulators grant the crypto exchange official approval to begin offering crypto products and services in the French market.
Meanwhile, Binance intends to use the French victory as a launchpad for further expansion around the globe, targeting the European market in particular.
However, the expansion move comes when crypto is under regulators’ scrutiny in most countries, especially the European Union. European countries have unanimously voted to favor the ban on decentralized digital assets while implementing a strict reporting routine surrounding cryptocurrency transactions.
Spain is Not Sure of Crypto Approval
Spain is the regulatory body that has been apprehensive about giving the green light to Binance due to the uncertainties surrounding the transactions of and trading in cryptocurrency and their impact on the larger financial market.
The CNMV wants Binance to discontinue its crypto derivative services in the country, which indicates the regulator’s unwillingness to grant Binance official approval for operation in Spain.
Binance has instantly removed any trace of crypto derivatives from its Spanish platform in response to the call. Still, it allows existing users to hold on to their previously acquired assets.
Accordingly, it was reported that the Spanish regulatory body has an aversion to cryptocurrency derivatives following the massive loss that investors have suffered. The body made it clear in 2021 about its position on the product.
Binance has since applied for a regulatory permit last year and is still awaiting the result of its application. Still, it appears that the exchange is currently occupying a gray area in the mind of the Spanish financial regulator.
Meanwhile, other crypto exchanges have since gotten official approval to begin operations in Spain. This approval is subject to complying with the strict regulatory guidelines on money laundering and routine reporting of transactions to the authorities.
Binance Wants Regulatory Green Light
All available reports have largely pointed to the total compliance with regulatory rules by the exchange as it strives to win the central bank’s approval. However, this approach adopted by Binance is not limited to Spain alone as it looks to sway the regulators toward its cause.
To buttress its point, Binance has consistently cited the compliance it has been showing to local laws in the country of its operation to attract the attention of the regulators. Binance is credited with being one of the first exchanges to comply with the strict sanctions slammed on Russia following its invasion of Ukraine.
Still, its regulatory drive has not been easy, and the exchange is determined to do what is right.