Spanish Securities Regulator Warns against Bybit and Huobi

Spanish Securities Regulator Warns against Bybit and Huobi

August 17, 2021

The Spanish securities markets regulator, locally known as Comisión Nacional del Mercado de Valores (CNMV), has issued a warning notice against twelve companies that include the name of two major crypto trading venues: Bybit and Huobi.

The other names include crypto exchanges Dsdaq Market, Markets Cube and Expertise Trader; crypto token issuer N2 Group; trading platforms Markets EU, Profit Assist and Financial Resident, among others.

As per the list published on Monday, none of these companies are registered with the Spanish agency, and thus cannot offer services to Spanish nationals.

“According to CNMV records, these institutions are not registered in the corresponding registry of this Commission and therefore are not authorized to provide investment services or other activities subject to the CNMV’s supervision,” the regulatory notice stated.

However, CNMV only has administrative powers in the country, meaning a judicial order is required to put sanctions on these companies banning them from operating in Spain. But, the warning will definitely alert Spanish consumers about the legality of these platforms.

Regulators against Crypto Exchanges

Both Huobi and Bybit are big names in the crypto spot and derivatives trading industry. Earlier, the Japanese Financial Services Agency (FSA) issued a similar warning against Bybit, alleging that the Singapore-based exchange is running unlicensed operations in the country.

Meanwhile, the top crypto exchange by trading volume, Binance, is facing harsh regulatory scrutiny globally as many regulators have either issued warnings or taken enforcement actions against the platform.

Binance, which does not have any formal headquarters, is now focusing to align its services with local regulations. It has suspended derivatives trading services in Hong Kong and multiple European countries and stopped offering stock tokens. Most recently, it pulled out its operations from Malaysia and South Korea.

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