Spain turns the spotlight on some cryptocurrency exchanges, including Bybit and Huobi. In fact, both are mentioned in a warning issued by the CNMV and directed to investors.
The CNMV is the Comision Nacional del Mercato de Valores, which is the Spanish authority called to supervise financial markets and exchanges.
In a warning issued yesterday, it is pointed out that several institutions are operating in Spain without being registered with the Commission. Therefore, they are not authorized to provide investment services or other activities under the supervision of the CNMV.
Among the 12 companies cited are precisely Bybit, Huobi, but also other cryptocurrency service providers such as:
- Experise Trader 4,
- Markets Cube,
- The Market Limited.
The warning issued by the Spanish authority does not make these platforms illegal for the time being. This type of warning is aimed more at investors, making them aware that the platforms mentioned above do not have Spanish licenses and are not subject to national rules to protect investors.
There are several cryptocurrency exchanges in the list of companies that are not operating with Spanish licenses, even among the most important ones, such as Coinbase UK and Binance.
The CNMV does not have the authority to be able to take platforms offline. For this to happen in Spain, there needs to be permission from a judge. That explains why they remain operational.
Cryptocurrency exchanges are in the crosshairs of authorities, not only in Spain
In Spain, what is happening has already happened in Italy, where Consob has set its eyes on Binance, particularly for its derivative products. Also, in the UK, the FCA monitors cryptocurrency exchanges’ activities and has banned derivatives trading.
These activities developed in a deregulated market, and the power of the web meant that cryptocurrency exchanges could operate around the world. But by offering investment services, particularly in a particularly risky product due to its volatility like cryptocurrencies, national bodies cannot stand by and have a duty to step in to protect investors.
The cryptocurrency market has begun a path toward regulation, but not an easy one, given that many entities are decentralized. Still, there is confidence well spelled out by Binance CEO Changpeng Zhao that regulation will not be a brake but a driver for the industry.