De Nederlandsche Bank, the central bank of the Netherlands, issued a warning to Binance Holdings Limited and its entities offering cryptocurrency services to local residents.
In a statement Wednesday, De Nederlandsche Bank said the major cryptocurrency exchange was not operating in accordance with the country’s Anti-Money Laundering and Terrorism Financing Act, claiming that Binance clients were at risk of “engaging in money laundering or financing of the terrorism”. According to the central bank, Binance illegally offers cryptocurrency services as well as custodial wallets without the required legal registration.
The Dutch central bank specified that its notice was for the cryptocurrency exchange’s parent company, Binance Holdings Limited, as well as for entities “under which Binance provides cryptocurrency services in the Netherlands.” This would apparently apply to the global exchange as well.
The warning comes after financial watchdogs in different countries claim that Binance Holdings Limited is not authorized to provide certain services to its residents. Authorities in Italy, Malaysia, Poland, Germany, the United Kingdom, the Cayman Islands, Thailand, Canada, Japan and Singapore have issued statements advising investors to be cautious regarding Binance or stating that the exchange operates. illegally.
In a Bloomberg interview on August 17, Binance CEO, Changpeng Zhao said that most of his attention was focused on ensuring that the exchange complied with local regulators in its move to be a financial institution rather than “the daily operations of the exchange.”. Zhao has previously hinted that he would be willing to accept “a senior person with solid compliance experience” to eventually replace him as CEO.
“We are going through a turn from a technology innovator to a financial services company, so we must fully comply,” Zhao said. “I think right now all regulators around the world see cryptocurrencies as financial instruments.”
“We need to apply for licenses and it is very important that we communicate with the regulators request for regular meetings where we proactively inform them about what we do.”