Binance Receives Two Warnings in a Day, One in Italy & Other in Lithuania

Binance is vexed as it has been continuously receiving warning notices from regional regulators wherever it is carrying out its business of crypto trade. The saddest part is that in a single day there have been two warnings coming from the regulators of Italy and Lithuania involving the same cause of action that Binance isn’t authorized under the respective rules and regulations of both these states.

Friday the 16th of July, 2021 is one of the unluckiest days for Binance as the firm had to receive one after another warning notices. The first warning was issued by the crypto and financial regulator of Italy called “Consob”. Consob detailed in the warning notice that the firm cannot function in the absence of authorization from the authority. Otherwise, all legal activities, whether they provided for crypto trading or an opportunity for investment, will be regarded as “illegal” activities.

Consob clarified that Binance wouldn’t be allowed to operate in Italy if it will not ensure abidance by rules and regulations. Consob further claimed that the Binance group is running its website which is available to Italians. Neither the firm nor its website is entitled to engage in any crypto-related business activities, claimed Consob.

However, Binance might have hardly finished reading the Consob’s notice when there was another warning received to it. The second warning came again from Lithuania, a member of the EU from the northeaster side of Europe. The warning was issued to Binance UAB, which is working in Lithuania as a non-licensed crypto trading firm. However, in the case of Lithuania, the warning has been issued by the central bank of Lithuania. Through the warning notice, the bank has warned Binance UAB that the firm should immediately abide by the state rules. The bank alleged that widespread dissemination of misleading information has been made by Binance UAB.

The bank further pointed out that it has thoroughly examined the provision and disclosure of information made by Binance. However, the provision is not in consonance with the laws, rules, and regulations. According to the bank, Binance UAB is projecting itself as an operator of a crypto trading platform as well as a crypto custodial service operator. But in reality, Binance UAB is in fact a crypto trading platform that is also rendering crypto custodial services as well. The use of the word “operator” is therefore misleading, claimed by the central bank. The bank alleged that an impression is being created as if Binance is merely an “operator” but the “services” are rendered by someone else.

However, Lithuania’s regulator’s warning is not that serious when compared with the warnings issued by Italy, Japan, Thailand, UK, and the Cayman Islands. But more or less all warnings have their own pecuniary and other consequences if they are taken lightly or impliedly.

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