is operating in the Netherlands without the appropriate license, according to the De Nederlandsche Bank (DNB)—the Dutch central bank.
“Binance is providing crypto services in the Netherlands without the required legal registration,” the bank said in a warning issued today.
Per the statement, the cryptocurrency exchange is not in compliance with anti-money laundering or anti-terrorism financing legislation in the Netherlands. “This may increase the risk of customers becoming involved in money laundering or terrorist financing,” the bank added.
Binance saga continues
This isn’t the first time a central bank or financial services regulator has warned or taken action against Binance for operating without a license.
In Malaysia, regulators have actually taken enforcement action against the exchange, alleging that the crypto exchange was operating illegally in the country despite being listed on an Investor Alert List in July 2020.
Adding to the uncertainty, a spokesperson for the Monetary Authority of Singapore told Decrypt that Binance does not currently have a license in the country, but that it is in the process of applying for one.
That same spokesperson also said that a “significant number” of companies like Binance have had their applications turned down.
Elsewhere, regulators from the UK, Italy, the Cayman Islands, Malaysia, and Japan have all taken similar steps against the industry’s largest crypto exchange.
Binance has issued a statement in the wake of the DNB’s announcement.
“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. We will be working constructively with DNB and hope to give a positive update in the near future,” a spokesperson for Binance said.
“Binance takes compliance very seriously and although we are not formally registered with DNB yet, we have a robust compliance program that incorporates tools and procedures to combat money laundering and terrorist financing. We emphasize that it is key to Binance that our users’ interests continue to be protected,” the spokesperson added.