Spain’s National Securities Market Commission (CNMV) has suspended short selling in an attempt to protect local stocks from the recession triggered by the outbreak of coronavirus.

The decision will last one month, starting 17 March, with a potential extension for additional periods not exceeding three months.

In an email to Bloomberg, the commission stated:

“Due to the extreme volatility taking hold of European securities markets, including those based in Spain, their performance in the context of the situation arisen as a result of the virus COVID-19 and the risk of disorderly trading taking place in the following weeks. Another factor considered has been the consequences of the announcement of the state of emergency.”

Coronavirus effect on global economy

Coronavirus has hit the world economy, forcing the US Federal Reserve to slash interest rates by half a percentage point. In addition, Bill de Blasio, mayor of New York City, has allowed all licensed crypto firms to submit “preparedness plans” to counter the historic risk.

Meanwhile, crypto research firm Crebaco stated investors had earlier expected a slowdown in the last few years.

“The Global markets have been correcting since [the] last few days. Some blame it on CoronaVirus, some curse on crude oil,” Crebaco said.

Campbell Harvey, professor of international business at Duke University, said the recession would be very serious, with people avoiding risks by liquidating some of the cryptocurrencies after the coronavirus outbreak:

“We were already in a slowing growth situation and already headed for what might be a mild recession or just a slowdown. So given what we’ve seen in terms of in many cities, many countries where economic activity is basically stopped. So it could be that we’re already in a recession.”

Cryptolydian earlier reported that CaixaBank, Spain’s third-largest bank by market value, has officially rolled out its blockchain-based platform we.trade for its corporate clients.

Accordingly, it became one of the first banks to offer blockchain technology in Europe through its we.trade platform that ensures security and speed for corporate customers.

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