Binance alert. The Central Bank of Lithuania announced on Friday that it warned Binance, the world’s largest cryptocurrency exchange in terms of trading volume, on the grounds that it offers investment services, although it does not have a license in the Lithuanian market.
The Central Bank states that some cryptocurrency exchanges offer customers in Lithuania to invest in derivative instruments (futures and options), contracts for difference or securities related to cryptocurrencies, that these products are considered financial instruments and that investment services offered through these instruments must be licensed. explained.
Stating that it warned Binance about this issue, the Central Bank instructed the exchange to ensure that there is no misleading statement on its platform.
It was stated that platforms that offer unlicensed financial services such as Binance are “not subject to the standards that protect investors” and that investors who trade on these platforms are at “risk of losing all their money”.
Companies registered as operators of digital currency exchanges in Lithuania are not recognized as financial service providers and are not entitled to provide financial services.
Recently, warning statements about Binance came from the regulators of the United Kingdom, Cayman Islands, Hong Kong, Italy, Japan, Thailand. Stating that it is “cooperating with the regulators”, Binance announced in its announcement today that it will completely stop the stock token transactions on the stock market as of October 14.