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Spanish officials issue warning on Huobi and Bybit crypto exchanges

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Regulatory authorities continue to show interest in the digital asset and blockchain industry. Many of them also seek to control the activities of companies that provide services of this kind. Now the Spanish National Commission for the Stock Market (CNMV) compiled a list of organizations that have not registered to provide financial services. Warnings have been issued, including to the cryptocurrency exchanges Huobi and Bybit.

The official document published by the department on August 16. The list of organizations that have not registered in the relevant register of the Spanish Commission includes cryptocurrency trading giants – exchanges Huobi and Bybit. According to CNMV, the listed companies cannot provide investment services in Spain prior to registration. The official website of CNMV also contains information that organizations can provide their users with such services with securities only if they are registered.

Thus, the list of crypto companies that the financial regulator of Spain issued warnings continues to grow. It already includes Coinbase, Binance, KRAKEN and many more.

Other restrictions on Huobi and Bybit

Bybit already received a similar notice from the UK regulator in February this year; and in March announced it was closing its business in the country. Since June 15, 2021, Chinese users have lost access to the platform after “conducting an internal investigation”. In July, the exchange came under the gun of Japanese regulators.

Huobi faced “internal scrutiny” in China and suspended derivatives trading in that country this June; as well as in the UK and 7 other countries. According to the new user agreement, the exchange banned transactions with cryptocurrency and providing related services to users in Crimea and 12 countries; including the United States, Canada, Japan, Iran and North Korea.

Regulation of digital assets and cryptocurrency companies in Spain

It is worth noting that the Crypto Company Guide report compiled in November last year. According to this report, 120 cryptocurrency companies were registered in Spain as of November 20, 2020. Of these, 76 (63%) specialize in financial services, and 44 (36%) – in non-financial services. At the same time, there were 96 companies providing services related to digital assets and operating in Spain, and 24 foreign ones.

Last year, the Spanish government’s attitude towards the cryptocurrency industry was quite friendly. The Senate Committee on Economic Affairs and Digital Transformation has approved a law providing for the development of Sandbox. As the representatives of the department said at that time, the launch will generate new initiatives in the financial technology ecosystem; simplify access to finance, increase competition and reduce barriers to entry. This year; the Socialist Labor Party of Spain (PSOE) made a proposal to develop and implement a central bank digital currency. The party also said that the launch of the CBDC in the state will provide a high level of liquidity for the currency.

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