In the latest development, Belgium has joined the ranks of countries taking decisive action against binance. The authorities have now issued an order demanding that the services provided by the company be halted.
In violation of the ban, the Financial Services and Markets Authority (FSMA) accused Binance of offering and offering exchange services in Belgium.
These services include transactions between virtual and fiat currencies, as well as custodial wallet services, originating from countries outside the European Economic Area, according to the regulator’s statement.
This latest action by Belgium follows reports of a French investigation into Binance and a confirmed visit from French authorities.
In addition, a legal dispute between Binance and the Securities and Exchange Commission (SEC) is currently under way. These factors have contributed to the evolution of the situation surrounding cryptocurrency exchanges.
Notice text:
Therefore, the FSMA has ordered Binance to immediately stop offering or offering any and all of these services in Belgium
Binance expresses its disappointment with the decision
Depending on the regulations in force in the country, any countries or individuals not included in the European Economic Area are expressly prohibited from engaging in offering or providing exchange services between virtual and fiat currencies, as well as custodial wallet services within Belgium.
This prohibition applies even if these activities are considered complementary or complementary to their professional operations.
A Binance spokesperson stated:
We are disappointed to learn that the FSMA has reached this decision despite our ongoing talks. We are reviewing the details of their notice and will continue to work collaboratively with regulators in Belgium and around the world in compliance with our commitments.
As part of the order issued, Binance will undertake to communicate with all of its clients based in Belgium. The exchange should facilitate the return of all cryptocurrencies and private keys that were under its custody to these customers.
This measure aims to ensure compliance with regulatory directives and protect the assets of clients residing in Belgium.
Binance operators
The Belgian investigation identified 27 companies that are categorized as “Operators of Binance” and considered to be involved in the operational and/or technical aspects of providing these services. Of these companies, 19 are located outside the European Economic Area.
The press release stated:
Despite the numerous information requests that have been made to Binance, the latter has not been able to prove to the required legal standard that the legal entities that carry out services of the aforementioned type in Belgium are in fact located in the European Economic Area and they are authorized, based on their local law. , to provide such services in Belgium.
Binance recently made an announcement stating that it has decided to end operations across Europe. The company claims the move was motivated by a desire to have fewer regulated entities.
As a result, Binance exited both Cyprus and the Netherlands, signaling its intention to discontinue its services in these countries.
Featured image from UnSplash, chart from TradingView.com