June 25, 2023

Binance Ordered To Stop Crypto-related Services in Belgium

Binance in Belgium

Binance in Belgium

Despite the agreement reached between Binance, the world’s largest cryptocurrency, and the US Securities and Exchange Commission, Binance still faces harassment in some European countries, recently in Belgium.

The Belgian Financial Services and Markets Authority (FSMA) has ordered Binance to halt all its crypto-related services immediately, a press release by FSMA said.

“The FSMA has therefore ordered Binance to cease, with immediate effect, offering or providing any and all such services in Belgium,” the statement read, Cointelegraph reported.

FSMA attributed the order to that Binance is not a member of the European Economic Area so it is prohibited from offering or providing, within Belgium in addition to violating the Belgian Law on the prevention of money laundering and terrorist financing.

FSMA pointed out it had tried to reach Binance several times for more information but it did not get satisfactory answers identifying the services its companies provided. It is worth mentioning that Binance controls around 19 companies outside of the European Economic Area — European Union nations as well as Iceland, Liechtenstein and Norway.

FSMA said the Belgian users do not know Binance companies’ operations or technical support while reading the terms and conditions because they did not appear.

“In spite of the opportunities offered to Binance on several occasions, the latter has failed to demonstrate, with due documentation and proof, that the exchange services between virtual currencies and legal currencies and the custody wallet services that it offers and provides within Belgium are carried out by means of a legal entity governed by the law of another member state of the European Economic Area that is duly authorized by its home member state to carry out these activities, including within Belgium,” the FSMA added.

For its part, Binance has to contact all its Belgium-based clients and return all crypto and private keys the exchange held. A Binance spokesman said the exchange is so disappointed with the FSMA’s decision and planned to review the regulator’s notice.

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