The Belgian financial markets watchdog has ordered cryptocurrency exchange Binance to immediately stop offering digital asset exchange and custody services in the country. The regulator also instructed the exchange to return all customers’ crypto holdings and keys.
Financial Services and Markets Authority (FSMA) issued The request was made on Friday, indicating that the cryptocurrency exchange was serving clients in the country from countries that are not members of the European Economic Area (EEA). She added that Binance is not opposed to offering such a service in Belgium.
According to the oversight, the 27 companies, dubbed ‘Binance Operators’, are engaged in providing operational and/or technical support for cryptocurrency exchange and custody services to Belgian clients. However, despite numerous requests, the exchange failed to show that 19 of these entities “are in fact located in the European Economic Area and are authorized, based on their local laws, to provide such services in Belgium,” the FMSA noted.
“Persons or companies governed by the law of a country that is not a member of the European Economic Area are prohibited from offering or providing, within Belgium, by means of a professional activity – even if supplementary or affiliated – exchange services between virtual currencies and fiat currencies or custodian wallet services,” the FSMA explained. .
The Financial Markets Supervisor said that rather than returning all assets of Belgian clients, Binance could choose to transfer them to entities regulated under the law of an EEA member state. These entities must also be authorized by the local laws of their jurisdiction to carry out cryptocurrency exchange and custody services, including within Belgium.
Further, the FSMA urged Binance to “take all precautions that may be useful to ensure the security of such transfers.” The exchange also warned that the Belgian public prosecutor has been briefed on the case, and that it will apply criminal penalties under Belgian law on preventing money laundering and terrorist financing if Binance does not comply with the order.
The Belgian financial markets watchdog has ordered cryptocurrency exchange Binance to immediately stop offering digital asset exchange and custody services in the country. The regulator also instructed the exchange to return all customers’ crypto holdings and keys.
Financial Services and Markets Authority (FSMA) issued The request was made on Friday, indicating that the cryptocurrency exchange was serving clients in the country from countries that are not members of the European Economic Area (EEA). She added that Binance is not opposed to offering such a service in Belgium.
According to the oversight, the 27 companies, dubbed ‘Binance Operators’, are engaged in providing operational and/or technical support for cryptocurrency exchange and custody services to Belgian clients. However, despite numerous requests, the exchange failed to show that 19 of these entities “are in fact located in the European Economic Area and are authorized, based on their local laws, to provide such services in Belgium,” the FMSA noted.
“Persons or companies governed by the law of a country that is not a member of the European Economic Area are prohibited from offering or providing, within Belgium, by means of a professional activity – even if supplementary or affiliated – exchange services between virtual currencies and fiat currencies or custodian wallet services,” the FSMA explained. .
The Financial Markets Supervisor said that rather than returning all assets of Belgian clients, Binance could choose to transfer them to entities regulated under the law of an EEA member state. These entities must also be authorized by the local laws of their jurisdiction to carry out cryptocurrency exchange and custody services, including within Belgium.
Further, the FSMA urged Binance to “take all precautions that may be useful to ensure the security of such transfers.” The exchange also warned that the Belgian public prosecutor has been briefed on the case, and that it will apply criminal penalties under Belgian law on preventing money laundering and terrorist financing if Binance does not comply with the order.
