Binance has come under attack from regulators around the world for the past few months, and its problems only seem to grow
The leading crypto exchange Binance faces numerous regulatory challenges despite the changes to its business model in recent months. The list of regulators targeting cryptocurrency exchanges is growing and the Central Bank of the Netherlands is now joining them.
De Nederlandsche Bank (DNB) announced yesterday that Binance is offering services in the Netherlands without a license. According to the central bank, Binance has not completed the necessary legal registration with the DNB.
“This means that Binance does not comply with the Anti-Money Laundering and Terrorist Financing Act (Wet ter voorkoming van witwassen en financieren van terrorisme – Wwft) and illegally offers services to exchange between virtual and fiduciary currencies and illegally offers custodians,“Added the central bank.
According to DNB, Binance’s license-free operation increases the risk that traders and investors will be involved in money laundering, terrorist financing or other vices. The DNB said the warning includes other Binance companies, including Binance Holdings Limited and Binance Operators.
The DNB did not state whether the cryptocurrency exchange will be sanctioned. However, the warning is in line with what Binance received in Hong Kong, Italy, Japan, Malaysia and the UK.
In the UK, the Financial Conduct Authority (FCA), which issued its warning, got some prominent banks like HSBC, Santander and Barclays to block Binance payments. It is unclear whether Binance will face similar measures in the Netherlands.
For its part, Binance has rapidly and massively changed its operations in different parts of the world. The exchange has stopped trading tokenized shares on its platform. Binance has also stopped trading derivatives in Hong Kong and Europe.
In addition, Binance has begun hiring former regulatory executives to design their operations to meet regulatory requirements. However, these didn’t help that much as the exchange continues to face regulators.
With regulators now focused on the cryptocurrency market, crypto exchanges and other crypto-related service providers need to ensure that they operate within the confines of the law.