The circle around Binance, the world’s largest cryptocurrency exchange, is tightening. This time, the Belgian financial regulator ordered the Binance exchange to stop all virtual currency services.
FSMA orders giant cryptocurrency exchange to cease operations
The Belgian Financial Services and Markets Authority (FSMA) has ordered major cryptocurrency exchange Binance to cease offering crypto exchange and custody wallet services. The regulator said it should stop all crypto-related services in Belgium “with immediate effect.” He cited Binance’s inability to provide sufficient information about companies outside the EEA as the reason.
In a June 23 notice, the FSMA said that by offering Binance crypto-related services from “non-European Economic Area countries,” the exchange violated Belgian laws on Anti-Money Laundering and Countering the Financing of Terrorism. The financial regulator stated that Binance must cease all related services in Belgium “with immediate effect”.
Financial regulator says Binance failed to file required documents
According to the FSMA, Binance controls an estimated 19 companies that are involved in its operations or technical support outside the European Economic Area (European Union countries, as well as Iceland, Liechtenstein and Norway) that do not appear in the terms and conditions that Belgian users read when registering for the services. The regulator made “various requests for information” from Binance. But he said he did not receive satisfactory answers describing the services his company provides. In this context, the FSMA made the following statement:
Despite the opportunities offered to Binance on several occasions, exchange services between virtual currencies and fiat currencies and custodian wallet services that it offers and provides in Belgium are not limited to any other European Economic Economic Area duly authorized by its member state to carry out these activities, including Belgium. It failed to demonstrate, with the necessary documents and evidence, that the area was run through a legal entity subject to the laws of its member state.
Binance spokesperson: Disappointed!
As part of the decision, Binance is required to contact all Belgium-based customers. Because the exchange has to return all crypto and private keys it has. A Binance spokesperson said in a statement that the company was “disappointed” by the FSMA’s decision. It also noted that it plans to review the financial regulator’s statement.
The FSMA is just one of several national regulators taking action against Binance. Because, as you follow on Kriptokoin.com, the United States Securities and Exchange Commission has filed a lawsuit against the stock market and its establishment in the USA for allegedly violating securities laws. Meanwhile, Belgian parliament member Christophe De Beukelaer made an interesting debut in January 2022. Beukelaer announced that he plans to receive his government salary in Bitcoin for a year.
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