Binance’s regulatory issues continue, and Lithuania is the latest country to issue a warning on cryptocurrency exchanges. Lithuania announced the news a day after Italy issued a similar warning.
Lithuania warns Binance
The Central Bank of Lithuania announced on Friday that it has issued a warning to Binance UAB regarding its unlicensed investment services in Lithuania. The central bank also “ordered the company to ensure that its public information is not misleading.”
The central bank explained that it has evaluated public information and found that Binance “acts as a virtual currency exchange operator and a hosted virtual currency wallet operator” in the country. The bank wrote:
The Bank of Lithuania spoke to Binance UAB…and warned the company about its unauthorized investment services in Lithuania and asked it to ensure that its public information complies with legal requirements and is not misleading.
In addition, the Bank of Lithuania pointed out that “services related to crypto assets are not regulated or supervised, so consumers may lose all their investment.”
The central bank further elaborated that some online cryptocurrency trading platforms allow its clients to invest in cryptocurrency derivatives (such as futures and options), contracts for difference (CFD) or securities-related crypto assets. The central bank emphasized that these are regarded as financial instruments, and the platform that provides them must be licensed by financial service providers.
However, the central bank clarified that “companies registered as virtual currency exchange operators in Lithuania are not subject to the supervision of financial service providers,” and elaborated:
They also have no right to provide any financial services, including investment services.
On Monday, Italy issued a similar warning about Binance. Regulators in the United Kingdom, Japan, the Cayman Islands, and Thailand have also recently issued warnings on global cryptocurrency exchanges. In response, Binance has suspended GBP withdrawals and EUR deposits via SEPA bank transfers.
What do you think of all these regulatory agencies that have emerged after Binance? Let us know in the comments section below.
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