Binance received a warning from the Bank of LithuaniaThe Central Bank of Lithuania announced on July 16, 2021 that it had issued a warning to UAB Binance about unlicensed investment services provided in Lithuania. The central bank also "ordered the company to make sure that its publicly available information was not misleading."
The central bank explained that it evaluated publicly available information and found that Binance "acts as a virtual currency exchange operator and virtual currency wallet custodian" in the country. The bank stated:
Bank of Lithuania contacted Binance UAB ... and warned the company about its unlicensed investment services.
In addition, the Bank of Lithuania noted that "services related to cryptoassets are not regulated or monitored, so consumers risk losing all of their investments."
The central bank also specified that some online cryptocurrency exchange platforms allow their customers to invest in cryptocurrency derivatives (e.g., futures and options), contracts for difference (CFDs) or cryptoassets linked to securities. The central bank stressed that they are considered financial instruments, and platforms offering them must be licensed as financial service providers.
However, the central bank clarified, "Companies registered in Lithuania as virtual currency exchange operators are not controlled as financial service providers", specifying:
They are also not allowed to provide any financial services, including investment services.
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