Belgium Orders Binance to Halt Crypto Services in the Country
Belgium's Financial Services and Markets Authority (FSMA) has delivered a decisive blow to crypto exchange Binance, demanding an immediate cessation of all virtual currency services within the country. The FSMA's stringent stance asserts that it “takes the view that by offering such services in Belgium from countries that are not members of the European Economic Area, Binance violates that prohibition.”
Regulator Orders Binance to Cease Virtual Currency Services
Belgium’s Financial Services and Markets Authority (FSMA) announced its order on Friday, that it has ordered cryptocurrency exchange Binance to “cease immediately all offers of virtual currency services in Belgium.”
The FSMA noted that “Binance is offering and providing exchange services in Belgium between virtual currencies and legal currencies, as well as custody wallet services, from countries that are not members of the European Economic Area.”
The financial regulator emphasized: “The FSMA takes the view that by offering such services in Belgium from countries that are not members of the European Economic Area, Binance violates that prohibition.” The announcement details:
"By way of its decision dated 23 June 2023, the FSMA has therefore decided to order Binance to cease, with immediate effect, offering or providing any exchange services in Belgium between virtual currencies and legal currencies, as well as custody wallet services."
“Failure to comply with this prohibition is subject to criminal sanctions under Article 136 of the Belgian Law on the prevention of money laundering and terrorist financing,” the regulator warned.
In addition to ordering Binance to cease crypto activities in Belgium, the FSMA stated that it has “demanded that Binance take immediate measures” to return to Belgian clients “all cryptographic keys and/or all virtual currencies that Binance holds for their account, or to transfer these to entities governed by the law of an EEA member state and duly authorized by their domestic law to carry out such activities.”
FSMA’s Crypto Regulation
Belgium's regulator explained that providing exchange services “between virtual currencies and legal currencies and of custody wallet services (VASP) remains an unregulated activity, except as concerns combating money laundering and terrorist financing (AML/TF).”
The FSMA noted that the European Union’s Markets in Crypto-Assets (MiCA) regulation, which was published in the Official Journal of the European Union on June 9, “will introduce more general rules, and in particular prudential rules, governing activities relating to crypto-assets.” The regulator clarified:
"These rules, with direct effect in Belgian law, will enter into force in January 2025."
In the absence of specific regulations, the FSMA emphasized that Belgian common law and relevant provisions of the Criminal Code apply to crypto assets.
Binance finds itself under increased scrutiny from regulators worldwide, facing charges from the US Securities and Exchange Commission (SEC), including CEO Changpeng Zhao (CZ) and Binance US. In response, the exchange has halted operations in the United Kingdom, withdrawn from the Netherlands, and initiated the process of deregistration in Cyprus. French authorities are also probing Binance over allegations of money laundering and regulatory violations.
What do you think about Binance being ordered to halt its crypto services in Belgium and its decision to withdraw from multiple countries? Please let us know in the comments section below.
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