According to the Belgian Markets and Financial Services Authority, Binance, the world’s largest cryptocurrency exchange, has been found to provide services from non-European Economic Area countries.
The regulator stated that individuals and companies operating in Belgium, but not belonging to the European Economic Area, are prohibited from providing exchange services between virtual and fiat currencies, as well as custodial wallet services.
Order for Binance
The Belgian Financial Services and Markets Authority (FSMA) has issued an order to Binance, a leading cryptocurrency exchange, to stop all virtual currency services within the country.
According to the regulator’s statement, the FSMA alleged that Binance was providing exchange services between virtual and fiat currencies, as well as custodial wallet services, from countries in the non-European Economic Area (EEA).
The FSMA directive requires Binance to immediately stop offering or providing any such services in Belgium.
The regulator emphasized that individuals and companies subject to Belgian laws, who are not members of the European Economic Area, are prohibited from participating in the provision of exchange services that include virtual currencies and fiat currencies, as well as custodial wallet services.
Failure to comply with these regulations may result in criminal penalties, as provided by the FSMA.
Tiger’s regulation comes after Johan van Overtveldt, a member of the European Parliament and former finance minister for Belgium, sparked controversy with tweet Calling for an EU-wide ban on cryptocurrency.
Taking to Twitter on March 17, Van Overtveldt cited the ongoing turmoil in the banking sector as a reason for a strict ban on digital currencies, arguing that they offer no economic or social value.
Mounting regulatory challenges
Binance, a prominent cryptocurrency trading platform, is facing increasing regulatory challenges as it faces allegations from the US Securities and Exchange Commission (SEC) of possible violations of securities law.
Problems with the exchange escalated with the revelations of an ongoing investigation by the French authorities.
Amid these legal battles, Binance has made the decision to pull its services from markets within the European Economic Area (EEA), including the Netherlands and Cyprus, citing regulatory issues as the main reason for its departure.
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Intense scrutiny surrounding Binance has put the exchange in the spotlight, raising concerns about its compliance with securities regulations and its ability to navigate the complex landscape of international financial regulations.
The SEC allegations underscore the need for Binance to address potential legal violations and cooperate with regulatory authorities in order to restore confidence and maintain its position in the competitive cryptocurrency market.