Binance is repeatedly criticized by regulators around the world. De Nederlandsche Bank (DNB) is now warning customers about the Binance crypto exchange.
De Nederlandsche Bank (DNB) announces that Binance is offering crypto services in the Netherlands without the required legal registration with the DNB. This means that Binance does not comply with Anti-Money Laundering and Terrorist Financing Act and illegally offers services for exchanging virtual and fiduciary currencies and illegally offers custody wallets.
It cannot be ruled out that Binance is involved in one way or another in money laundering or terrorist financing, the DNB concludes after its own investigation. The DNB cannot say whether there is any concrete evidence that Binance is involved in these cases and why a warning has now been issued specifically for Binance and not for other international crypto exchanges. A Binance spokesperson said:
“We are aware of a message from the DNB about Binance in the Netherlands. As part of our commitment to redouble our compliance efforts, Binance is in the process of filing an application for the required registration. We will work constructively with the DNB and hope that we can give a positive update in the near future. “
This is not the first time a central bank or financial services regulator has warned Binance or taken action for operating it without a license.
In Malaysia, regulators have actually taken enforcement action against the exchange, claiming that the crypto exchange was operating illegally in the country, despite being listed on an Investor Alert List in July 2020.
Elsewhere, regulators from the UK, Italy, Cayman Islands, Malaysia and Japan have taken similar steps against the industry’s largest crypto exchange. The exchange was forced to step up its compliance measures. Her drastic change in strategy included reducing leverage and introducing a strict KYC (Know-Your-Customer) policy.
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