According to a statement from the Dutch central bank, Binance offered its services in the Netherlands without the required registration.
Binance illegally offers crypto services
The Dutch central bank said Binance was not operating in accordance with Dutch law Anti-Money Laundering and the Counter-Terrorist Financing Act, claiming customers were at risk of “being involved in money laundering or terrorist financing.” According to the central bank, Binance illegally offers crypto services and custodial wallets without the required legal registration.
The bank also noted that its notice was directed at the crypto exchange’s parent company Binance Holdings Limited, as well as companies “under which Binance provides crypto services in the Netherlands.”
Binance commented, on the situation, stating “We are aware of a notice by DNB about Binance in the Netherlands. As part of our commitment to redoubling our efforts in compliance, Binance is in the process of submitting an application for the required registration,” the spokesperson said. “We will be working constructively with DNB and hope to give a positive update in the near future.”
Not the first country to warn Binance over its activities
Regulators in the UK, Germany, Hong Kong, and Italy have already raised similar concerns about the exchange, issuing statements warning investors to be cautious about Binance or claiming the exchange is operating illegally.
As a result of the regulators’ concerns, Binance has had to scale back parts of its business. Last month, the company banned its users in Germany, Italy, and the Netherlands from opening new accounts for futures or derivatives. The exchange also lowered the leverage that new users can use.