Cryptheory – Just Crypto

Cryptocurrencies are our life! Get an Overview of Market News

The Dutch central bank warns against Binance

2 min read

Also The Dutch central bank has issued an official warning against Binance.

The Dutch central bank warns against Binance

After the Italian Consob released last month, it is now coming next one from De Nederlandsche Bank (DNB), which announces that Binance provides services in the Netherlands without the required registration with DNB. The Exchange finds that it does not comply with the Anti-Money Laundering (AML) and Terrorist Financing (WWFT) regulations.

The Dutch central bank warns against Binance

The official announcement of DNB explicitly states:

“[Binance] illegally offers services for the exchange between virtual and fiat currencies and illegally offers deposit wallets. “

According to the bank, this approach could increase the risk of involving customers in money laundering or terrorist financing. Incidentally, DNB also publishes on its website a register of cryptocurrency service providers legally authorized in the Netherlands, including Binance.

While the Italian Consob warning only concerned derivative products, this concerns the whole cryptocurrency activity of the stock exchange in the Netherlands.

Although the two countries belong to the EU and the Eurozone, they have different rules for financial service providers, so if no license is required to operate as a cryptocurrency exchange in Italy, yes in the Netherlands and Binance does not.

What risks Binance in the Netherlands

In fact, Binance now risks blocking its sites in the Netherlands if it does not comply with local regulations. This would require obtaining an operating permit, but it will not be easy to obtain one in the short term. It is therefore likely that she could be forced to temporarily close all her services to Dutch customers until she obtains a license to operate in the country.

Binance does not seem to have any problems obtaining such a license, but it will be a matter of how long it will take.

It is therefore likely that the company will be forced to take action before awaiting authorization to operate legally in the Netherlands. Nevertheless, it is not yet clear what events he will take.

For example, for the American market, he had to create a second site, Binance.US, which was specifically designed to provide services to Americans by law. However, it seems unlikely that it will do the same for the Dutch market, which is far worse in terms of clients and trading volume.

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

Leave a Reply