In Brief:
- Binance is delivering cryptocurrency services in the Netherlands without the necessary legal registration.
- It is violating the country’s anti-money laundering and anti-terror funding statute, according to DNB.
Binance, one of the largest cryptocurrency exchanges, got a warning from De Nederlandsche Bank (DNB) on 18th August 2021. Customers should avoid utilising the cryptocurrency exchange Binance, according to DNB.
“Binance is providing crypto services in the Netherlands without the required legal registration with DNB,” according to the warning. It is impossible to avoid the possibility that a crypto exchange is involved in money laundering without such registration. “As a result, customers may be more likely to be involved in money laundering or terrorist financing.”
The spokesperson of Binance commented that, “We are aware of a notice by DNB about Binance in the Netherlands. As part of our commitment to redoubling our efforts in compliance, Binance is in the process of submitting an application for the required registration”. He further added, “We will be working constructively with DNB and hope to give a positive update in the near future.”
The US Department of Justice and the Internal Revenue Service had previously investigated Binance. National financial regulators in the United States, the United Kingdom, Italy, and Germany are investigating the site for alleged unlawful trading.
Binance’s CEO Changpeng “CZ” Zhao previously stated that “right now, his main focus is to employ people with compliance and regulatory knowledge.”
Also, recently, Binance hired Greg Monahan as its new anti-money laundering expert.
About Binance:
Binance is registered in the Cayman Islands. Since the end of last year, crypto companies that want to operate in the Netherlands have been required to register with DNV. Businesses have been very critical of this registration in the recent year.
