By Larry Wright
Binance quickly became the largest cryptocurrency exchange in the world with the biggest transaction volume. The crypto exchange is operating in more than 200 countries around the world. It is interesting to know that Coinbase, another crypto trading platform, has recently filed for a public listing. However, it is still behind Binance in terms of getting more attention from consumers.
Binance has been able to introduce a digital token called BNN, which is also the 4th largest cryptocurrency in the world in terms of market cap. Furthermore, the crypto enterprise recently introduced a crypto ecosystem called the Binance Smart Chain or BSC. Nevertheless, the company has started to face regulatory set back in many parts of the world, with the Netherlands becoming the latest addition to the list.
Central Bank may Take Legal Action against Binance
Due to the increasing volume of Binance exchange, it is no longer impossible for the regulatory authorities in many countries to ignore the enterprise as a financial entity. Therefore, a host of countries have started to take note of Binance activities recently. De Nederlandsche Bank or DNB has recently issued a public warning against Binance.
The DNB statement claims that Binance does not have a legal registration to conduct crypto-related trading under their jurisdiction. The management of DNB further stated that Binance is also not compliant with the Anti-Money Laundering and Anti-Terrorist funding financial Acts. It is illegal for Binance to offer custodial and fiduciary asset exchange in the Netherlands. The digital wallets that are offered by Binance are also illicit.
A new article published in De Telegraaf reveals that DNB may take legal action against Binance. However, CEO Changpeng Zhao responded that the enterprise is in the process of acquiring a practice license with the central bank of the Netherlands. Other countries where Binance is facing regulatory include Japan, Cayman Islands, Poland, Thailand, Malta, Canada, Italy, U.K., and some other countries.
With the increasing regulatory pressure from more than 20 countries, Binance has been trying to change its strategy. Recently the crypto enterprise is in the process of implementing KYC (Know Your Customers) protocols in the region. Zhang also claimed that he is looking for employees with a better regulatory complaint experience. He is also prepared to step down from his position to deal with the regulatory concerns.