De Nederlandsche Bank, the central bank of the Netherlands, issued a warning to Binance Holdings Express and its entities offering crypto services to local residents.

In a Wednesday statement, De Nederlandsche Bank said the major crypto commutation was not operating in compliance with the country'south Anti-Money Laundering and Anti-Terrorist Financing Human action, alleging that Binance customers were at risk of "becoming involved in money laundering or terrorist financing." According to the central banking concern, Binance is illegally offering crypto services equally well as custodian wallets without the required legal registration.

The Dutch key bank specified that its notice was to the crypto exchange'south parent visitor Binance Holdings Express besides equally entities "under which Binance provides crypto services in kingdom of the netherlands." This would seemingly apply to the global crypto exchange also.

In a statement to Cointelegraph, a Binance spokesperson said the crypto substitution "is in the process of submitting an application for the required registration" and "will be working constructively" with the primal bank to meet its requirements.

"It is cardinal to Binance that our users' interests proceed to be protected," said the spokesperson. "Although we are non formally registered with [De Nederlandsche Bank] yet, nosotros have a robust compliance plan that incorporates tools and procedures to combat money laundering and terrorist financing."

Related: Dutch regulators unsure of number of crypto investors in Netherlands

The warning comes following financial watchdogs in dissimilar countries saying Binance Holdings Limited is not authorized to provide certain services to their residents. Authorities in Italy, Malaysia, Poland, Frg, the United Kingdom, the Cayman Islands, Thailand, Canada, Nippon and Singapore have issued statements warning investors to practice caution in regards to Binance, or claiming the commutation was operating illegally.

In a Tuesday Bloomberg interview, Binance CEO Changpeng Zhao said well-nigh of his attention was focused on ensuring that the substitution was in compliance with local regulators in its move to exist a financial institution rather than "the twenty-four hours-to-twenty-four hours operations of the commutation." Zhao has previously hinted he would be willing to take "a senior person with a strong compliance groundwork" to eventually replace him as CEO.

"We're going through a pin from a technology innovator into a financial services company so we need to exist fully compliant," said Zhao. "I believe right at present all the regulators around the world view crypto as financial instruments."

He added:

"We need to apply for licenses and it'south very important for the states to communicate with the regulators' asking for regular meetings where we proactively update them on what we practice."