Binance’s regulatory issues continue as Lithuania is the youngest country to issue a warning about Binance’s crypto exchange. Lithuania’s announcement comes a day after Italy issued a similar warning.

Lithuania is the youngest country to issue a warning to Binance

On Friday, the Central Bank of Lithuania announced that it had warned Binance UAB about unauthorized investment services being offered in Lithuania. The central bank “also orders the company to ensure that its public information is not misleading”.

The central bank stated that it had evaluated the public information and found that Binance “acts as a virtual currency exchange operator and cryptocurrency custodian operator” in the country. Bank wrote:

“The Bank of Lithuania contacted Binance UAB … warning the company about unauthorized investment services in Lithuania and asking the bank to ensure that their public information complies with the requirements.

In addition, the Bank of Lithuania notes that “crypto services are not regulated or regulated, exposing consumers to the risk of losing all of their investments”.

The central bank further clarified that some online crypto platforms allow their customers to invest in crypto derivatives (such as futures and options), contracts for difference (CFD) or cryptocurrencies related to securities. The central bank emphasizes that they are considered financial instruments and the platforms they offer must be licensed as financial services providers.

However, the central bank made it clear: “Companies that are registered in Lithuania as virtual currency operators are not regulated as financial service providers:

“They are also not allowed to provide any financial services, including investment services.”

Italy issued a similar warning to Binance on Thursday

The Italian financial regulator, the National Commission for Corporations and Exchanges (Consob), issued a warning to the Binance crypto exchange on Thursday.

Consob warns that Binance Group companies are not authorized to provide services and investment activities in Italy.

Conbuss stated that operations through binance.com are also not allowed, noting that “sections of the website called ‘Derivatives’ and ‘Security Tokens’ refer to cryptocurrency instruments that were also previously written in Italian.

The regulator continues to warn the public about investing in cryptocurrencies or crypto-related investments as it could mean a complete loss of the investment.

The Italian Financial Regulator concluded: “It is important to inform users that transactions with crypto-related instruments may involve risks that are not immediately recognizable due to the nature of the transaction, its complexity, the high price volatility of these tools as network failures and Attacks that can be subject to the IT infrastructure used for such operations. “

Regulators in the UK, Japan, the Cayman Islands and Thailand have also recently issued warnings about global crypto exchanges. In response, Binance has stopped withdrawing GBP and Euro deposits via SEPA bank transfer.

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