Alexander Savenkov Belgium’s Financial Services and Markets Authority (FSMA) has issued an order to cryptocurrency exchange Binance, directing them to immediately halt all virtual currency services within the country. The FSMA highlights Binance’s offering of exchange and custody wallet services between virtual currencies and legal currencies from non-European Economic Area (EEA) countries as a violation of the prohibition.
According to the FSMA’s announcement, effective immediately, Binance is required to cease providing any exchange services involving virtual and legal currencies, as well as custody wallet services in Belgium. The regulator emphasizes that failure to comply with this prohibition may result in criminal sanctions under Article 136 of the Belgian Law on the prevention of money laundering and terrorist financing.
Alongside the cessation of crypto activities, the FSMA has also demanded that Binance promptly take action to return all cryptographic keys and virtual currencies held for Belgian clients. They are instructed to transfer these assets to entities authorized by domestic law within an EEA member state.
Belgium’s regulatory framework for crypto assets currently treats the provision of exchange services and custody wallet services as unregulated activities, with the exception of measures against money laundering and terrorist financing. However, the FSMA highlights the forthcoming European Union’s Markets in Crypto-Assets (MiCA) regulation, scheduled to take effect in January 2025, which will introduce comprehensive rules, including prudential regulations, governing crypto asset activities.
Binance’s recent regulatory challenges extend beyond Belgium. The exchange is facing scrutiny from the U.S. Securities and Exchange Commission (SEC), which has filed charges against Binance, its CEO Changpeng Zhao (CZ), and Binance US. Additionally, Binance has ceased operations in the United Kingdom and withdrawn from the Netherlands, while also seeking to deregister in Cyprus. Furthermore, French authorities are investigating the exchange over allegations of money laundering and regulatory violations.
Please share your thoughts on Binance’s cessation of crypto services in Belgium and its decision to withdraw from multiple countries in the comments section below.
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Frequently Asked Questions (FAQs) about Binance, regulatory challenges
Why has Binance been ordered to cease its crypto services in Belgium?
Binance has been ordered to halt its crypto services in Belgium by the country’s Financial Services and Markets Authority (FSMA). The regulator stated that Binance violated the prohibition by offering services in Belgium from countries outside the European Economic Area.
What specific services is Binance required to cease in Belgium?
Binance is required to immediately cease offering exchange services involving virtual and legal currencies, as well as custody wallet services in Belgium. The order from the FSMA covers these specific activities.
What are the potential consequences for Binance if it fails to comply with the order?
Failure to comply with the prohibition can lead to criminal sanctions for Binance under Article 136 of the Belgian Law on the prevention of money laundering and terrorist financing. Binance faces legal repercussions if it does not adhere to the regulatory order.
How does the European Union’s MiCA regulation affect Binance’s operations in Belgium?
The Markets in Crypto-Assets (MiCA) regulation, set to take effect in January 2025, will introduce comprehensive rules governing crypto asset activities, including prudential regulations. The FSMA mentions that these regulations will have direct effect in Belgian law.
What other regulatory challenges is Binance currently facing?
Binance is currently facing regulatory challenges worldwide. The U.S. Securities and Exchange Commission (SEC) has filed charges against Binance, its CEO Changpeng Zhao (CZ), and Binance US. Additionally, Binance has ceased operations in the United Kingdom and faced investigations for money laundering and regulatory breaches in France and other countries.
More about Binance, regulatory challenges
- Financial Services and Markets Authority (FSMA) – Official Website
- Belgian Law on the prevention of money laundering and terrorist financing
- European Union’s Markets in Crypto-Assets (MiCA) regulation
- U.S. Securities and Exchange Commission (SEC) – Official Website
- Binance – Official Website
- Money laundering and regulatory breaches investigation – France
1 comment
miCA regulation comin’ in, gonna change the game for binance and other crypto companies. wonder how they gonna adapt to all these new rules and regulations. gotta stay compliant, folks!