important point
- Belgian financial authorities have accused Binance of operating outside the European Economic Area countries, which is illegal in Belgium.
- Binance is required to suspend its services immediately while it strives to comply with Belgian law and comply with the upcoming MiCA regulations.
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The Belgian Financial Services Market Authority (FSMA) ordered Cryptocurrency exchange Binance will immediately suspend all operations in the country. The FSMA alleges that Binance has violated Belgian law by providing custody wallet services, as well as exchange services between digital and fiat currencies, from countries outside the European Economic Area (EEA). .
“Despite several requests for information from Binance, Binance has attested to the necessary legal criteria that the legal entities performing the above types of services in Belgium are in fact based in the European Economic Area. and is authorized under national law to provide such services in Belgium.”
Binance allegedly offers these services in Belgium without a legal license, which is illegal under Belgian financial regulations. Despite several opportunities to demonstrate compliance with legal requirements, Binance reportedly failed to do so. The FSMA’s decision banning Binance from conducting any activity in the country will take effect immediately on June 23rd.
“Binance has no objection to providing such services in Belgium.” However, the entities providing these services are largely unknown, with 19 of the 27 companies involved. is based outside the EEA.
“These services appear to be provided by” binance operator Not otherwise specified in the terms and conditions above. ”
In addition, FSMA will either return to Binance all cryptographic keys and digital currencies held on behalf of its Belgian customers or transfer these assets to entities within the EEA authorized to conduct cryptocurrency and custody activities. requested the immediate commencement of measures to
Cryptocurrency exchange services and custody wallet services are currently unregulated, with the exception of anti-money laundering and anti-terrorist financing measures, but future regulations under the EU’s cryptocurrency market regulation will allow cryptocurrency exchanges and custody wallet services to be restricted from January 2025. It will provide a more structured framework for activities.
This is not the first EU country where Binance has had regulatory issues.
recent binance I was demanded to He decided to leave Cyprus due to growing interest in other, more prominent EU markets. This follows troubles with the Netherlands for failing to obtain a virtual asset service provider license to operate in the Netherlands.
However, Binance is still It is functioning in Spain, France, Italy, Lithuania, Sweden and Poland.