Binance has received yet another regulator warning for its cryptocurrency exchange services, this time from the Central Bank of Lithuania. It has become one of the many financial regulators across countries to flag Binance’s crypto services. Lithuanian regulator warned that the crypto exchange is offering ‘unlicensed investment services’ in the country and ordered the company to ensure that its publicly available information is not misleading.
Binance is operating as a crypto exchange and is also offering custody services for virtual currencies.
The latest warning from Lithuanian came after the central bank assessed Binance’s operations in the country based on the publicly available information. According to the central bank, Binance is operating as a virtual currency exchange and is also offering custody services for virtual currencies. “The Bank of Lithuania has also noted that crypto-asset related services are not regulated or supervised; thus, consumers risk losing all their investments,” the Lithuanian regulator stated. The primary concern of the Central Bank of Lithuania seems to be crypto derivatives trading services and stock tokens provided by Binance, rather than spot trading.
Binance has received several regulatory warnings recently.
Central Bank of Lithuania’s warning came only a day after Italy’s Consob warned that Binance is not authorized to provide derivatives and stock token trading services within its jurisdiction. Earlier, the German regulator also flagged Binance for its stock tokenization services and reportedly initiated a probe against the exchange for violating the local securities markets laws. Other global regulators, including Japan’s FSA, UK’s Financial Conduct Authority, and Poland’s UKNF, also issued an earnings Binance for its illegal operations in their individual jurisdictions. Crypto exchange has maintained that it takes its “legal obligations very seriously”.