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Binance receives warnings from Lithuania and Hong Kong

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The world’s leading cryptocurrency exchange Binance is now receiving warning from regulators in Lithuania and Hong Kong. They come days after the exchange stop its operations in Italy and put an end to the commercialization of the so-called «stock tokens».

Now the Lithuanian and Hong Kong authorities express their concerns about the platform’s activities. They claim that it is risky for users to operate with a company that offers services without having licenses for this purpose. Consequently, the service of the exchange it could suffer a new ban by national regulators.

Recently, it became known that Binance stopped operating in England and then in Italy. These nations joined a growing group of countries that ordered a halt to platform operations. Among them the United States stands out. Despite this, the exchange remains solid as the most important of its kind.

The warnings Binance receives and their legal motivations

The rise in popularity of cryptocurrencies seems to set off alarms among centralized entities. One of the ways that could help curb that momentum is to attack the trading platforms of those digital assets. In that sense, the growing warnings that Binance receives, the most important of these platforms worldwide, could be understood.

Although Binance is a centralized platform, its nature allows users to access decentralized assets outside of state control. The exchange has expressed its desire to collaborate with the authorities of all countries. However, the latter are reluctant, or at least that is the impression they give.

The latest cases of this onslaught by government entities are located in Lithuania and the Chinese province of Hong Kong. The second of these ensures that the services provided by Binance are considered “securities.” Therefore, you must have the necessary licenses to offer them. According to Securities and Futures Commission (SFC in English), the status of legality with which the platform operates is worrying.

For its part, the Lithuanian bank warns that crypto asset services are not regulated in the European country. Consequently, for Binance to operate these services, it must have special licenses. In such a way, the warnings that Binance receives could materialize in the Baltic country.

Binance receives warnings from the Bank of Lithuania and the Hong Kong regulatory authorities.

Binance claims it has every intention of collaborating

In an open letter, Binance CEO Changpeng Zhao stated that his firm has every willingness to collaborate with regulators.

«I want to take this opportunity to share our historical background and principles. Also, clarify our position and commitment and outline our plans for regulations. As well as, for the sustainable development of the cryptocurrency industry in the world“Says CZ.

At the same time, the employer ensures that the goal of the exchange, is to protect the interests of users. However, this conciliatory message does not seem to stop the animosities of the regulators.

As already highlighted, the authorities of the United Kingdom and Italy were the most recent to put a stop to the operations of the platform. Now countries and regions such as Lithuania and Hong Kong respectively warn Binance.

In the same vein, the financial regulatory bodies of other nations such as Thailand, Germany and the United States, have already spoken. In a short period of time, they will take the necessary actions to put an end to “the dangers” that according to them represent the services of the mentioned exchange.



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1 Comment
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