Binance, in recent times, has faced more level of scrutiny from financial regulators around the world as many of them have levied varying degrees of allegations against the crypto exchange.
The most recent financial regulator to sound a note of warning to the leading crypto exchange is Poland’s financial watchdog that has issued a consumer warning against the digital asset platform.
According to the Polish regulator, Binance’s operation remains unregulated in Central Europe. Thus, it is warning citizens of the country that “using services of Binance group entities and trading cryptocurrencies, as it may involve a significant risk that may result in the loss of funds.”
Poland’s financial authority also went on to cite other instances where its counterparts in other countries like Germany, United Kingdom, Cayman Island and Thailand have increased their crackdown against Binance. Notably, apart from those countries mentioned earlier, the United States alongside Japan and Canada have also looked to review the operations of the platform within their jurisdiction.
The regulator concluded its warning by reminding crypto investors in the country that the space remains unregulated within the country and that investing in digital assets is a risk.
Clampdown on Binance is Sign of Growth — CZ
Changpeng Zhao, the CEO of Binance, has stated that his exchange is focused on cooperating with financial regulators around the world so as to make the company compliant with the best financial practices within the industry.
CZ went on to note that the current level of regulations surrounding the industry is still too low and there is also quite a lot of uncertainty surrounding the space. However, with the growth in interest of regulators presently, he hailed this as a “positive signs that an industry is maturing.”