The central bank of the Netherlands, De Nederlandsche Bank, issued a warning to Binance Holdings Limited and its entities offering cryptocurrency services to native residents.
Within an official announcement earlier on Wednesday, De Nederlandsche Bank outlined that the leading crypto exchange wasn’t operating in compliance with the country’s AML [Anti-Money Laundering] and Anti-Terrorist Financing Act, alleging Binance users were in danger of “becoming involved in money laundering or terrorist financing.” consistent with the central bank, Binance is illegally offering crypto services as well as custodian wallets without the specified legal registration.
The Dutch central bank specified that its notice was to the crypto exchange’s parent company Binance Holdings Limited as entities “under which Binance provides crypto services within the Netherlands.” This would seemingly apply to the global crypto exchange also.
The warning comes following financial watchdogs in several countries adding that Binance Holdings Limited isn’t authorized to offer certain services to their native users. Authorities in Italy, Malaysia, Poland, Germany, the U.K., the Cayman Islands, Thailand, Canada, Japan, and Singapore have issued statements warning investors to exercise caution with regard to Binance, or claiming the exchange was operating illegally.
Earlier within a 17th Aug. Bloomberg interview, Binance CEO Changpeng Zhao outlined that most of his attention was focused on ensuring the exchange was in compliance with the native regulators in its move to be a financial organization instead of “the day-to-day operations of the exchange.” Zhao has previously hinted he would be willing to simply accept “a senior person with a robust compliance background” to eventually replace him as CEO.
“We’re browsing a pivot from a technology innovator into a financial services company so we can be fully compliant,” added Zhao. “I believe immediately all the regulators around the world view crypto as financial instruments.”
“We need to apply for licenses and really important for us to speak with the regulators’ request for regular meetings where we proactively update them on what we do.”