Binance Gets Warning from Bank of Lithuania Amongst Others

The Bank of Lithuania, the central bank of Lithuania, has joined the growing list of regulatory authorities to clamp down on Binance, the world’s largest cryptocurrency exchange.

The bank recently issued a warning to Binance UAB about its unlicensed investment services provided in Lithuania. The bank also “ordered the company to ensure that its publicly available information is not misleading.”

The apex bank noted that it has evaluated publicly available data and discovered that Binance is “acting as a virtual currency exchange operator and a custodian virtual currency wallet operator” in Lithuania. The bank detailed that:

“The Bank of Lithuania addressed Binance UAB … and warned the company about its unlicensed investment services provided in Lithuania as well as requested it to ensure that its publicly available information complies with legal requirements and is not misleading.”

Additionally, the bank also noted that “crypto-asset related services are not regulated or supervised thus consumers risk losing all their investments.”

Binance Under Fire from Multiple Regulatory Bodies

The Bank of Lithuania added that some online cryptocurrency exchanges allow their users to invest in crypto derivatives (such as futures and options), contracts for difference (CFD), cryptocurrency-linked securities. The bank asserted that these get treated as financial instruments, and the platforms offering them should have received licenses as financial service providers.

However, the bank noted that: “Companies that are registered in Lithuania as virtual currency exchange operators are not supervised as financial service providers,” adding that:

“They also have no right to provide any financial services, including investment services.”

Meanwhile, Italy issued a similar warning to Binance on Monday. Regulators in the UK, Japan, Cayman Islands, and Thailand have also issued warning notices to the crypto exchange. As a counter, Binance has suspended GBP withdrawals and EUR deposits through SEPA bank transfers.

 

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