A warning concerning non-fulfillment of mandatory regulatory requirements has been issued to Binance in the Netherlands as the Dutch Central Bank notes that Binance has been illegally offering services of crypto trading and crypto wallet without being registered with the relevant authority.
There have been many warnings lately against the lead crypto firm, Binance over the same issue i.e. non-compliance of mandatory requirements. The firm has been warned through multiple show-cause notices and suspension of business warnings in different parts of the world. The newest country that has questioned the business operations of Binance is the country of the Netherlands.
Troubles continue to increase for Binance Global because the fresh warning has stemmed from De Nederlandsche Bank (DNB). DNB is the central bank of the Netherlands which has commented that Binance is operating illegally within the country. The warning was duly comprised in the form of a warning notice, which was sent to Binance. The notice detailed that Binance has been offering crypto trade and custodial services without obtaining registration from the DNB. In the absence of the registration, the firm is legally not authorized to do any business within the country, said DNB in the notice.
DNB further clarified that the firm is also in breach of the mandatory requirements to ensure compliance with international policies and standards. According to DNB, the firm is not even meeting the minimum requirements mentioned in the Anti-Terrorist Finance Act and the Anti-Money Laundering. In these circumstances, Binance’s services such as the crypto trade as well as the crypto custodial, are illegal services. Under the law, Binance is not authorized to render such services and therefore should immediately desist from such services.
The bank further noted that if Binance continues to render illegal services, then the entire risk will be upon the local investors. The Bank suggested that the citizens will be encouraged to take part in money laundering activities. In the alternative, they will end up funding terrorism, if illegal crypto businesses are allowed to prosper in a market that is already unregulated.
The Dutch Bank has further clarified that the warning extends to Binance Holdings Limited as well as its subsidiaries. Binance Holdings Limited is the primary entity established by Binance Global in the Netherlands. It is through this company that crypto-related services are being rendered for the consumers living in the Netherlands.
Similar warnings too have been issued against Binance in more than 10 countries of the world. Initially, it was the UK and Japan, where the regulators took notice of the illegal business of Binance. Then there were countries such as the Cayman Islands and Malaysia where notices were issued to Binance. The issue with all 10 countries with Binance is the same i.e. non-authorized conducting of crypto business.