Lithuania Warns Binance, Warns Investors Crypto Services Are Unregulated – Bitcoin News Regulation

[ad_1]

Binance’s regulatory issues continue, with Lithuania being the latest country to issue a warning regarding the cryptocurrency exchange. Lithuania’s announcement came a day after Italy issued a similar warning.

Lithuania warns Binance

The Lithuanian central bank announced on Friday that it had issued a warning to Binance UAB regarding its unlicensed investment services provided in Lithuania. The central bank also “ordered the company to ensure that its publicly available information is not misleading.”

The central bank explained that it had evaluated publicly available information and found that Binance “acts as a virtual currency exchange operator and custodian of virtual currency wallet operator” in the country. The bank wrote:

The Bank of Lithuania approached Binance UAB … and cautioned the company against its unauthorized investment services provided in Lithuania and asked it to ensure that its publicly available information complies with legal requirements and are not misleading.

In addition, the Bank of Lithuania noted that “crypto-asset related services are not regulated or supervised, so consumers risk losing all of their investments.”

The central bank further clarified that some online cryptocurrency exchange platforms allow their clients to invest in cryptocurrency derivatives (such as futures and options), contracts for difference ( CFDs) or crypto-assets linked to securities. The central bank stressed that these are considered financial instruments and that the platforms that offer them must be licensed as financial service providers.

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

They are also prohibited from providing financial services, including investment services.

Italy issued a similar warning about Binance on Monday. Regulators in the UK, Japan, Cayman Islands and Thailand have also recently issued warnings on the global crypto exchange. In response, Binance suspended GBP withdrawals and EUR deposits via SEPA bank transfers.

What do you think of all these regulators coming after Binance? Let us know in the comments section below.

Image credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, nor a recommendation or endorsement of any product, service or business. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, good or service mentioned in this article.

[ad_2]