The financial regulator in Belgium, the Financial Services and Markets Authority (FSMA), recently forced cryptocurrency exchange Binance to halt its services in the country. This decision was made because the FSMA claims Binance has violated Belgian law by serving local customers from countries outside the European Economic Area (EEA).
According to the FSMA’s statement, businesses from countries outside the EEA are prohibited from offering exchange services between virtual and legal currencies to customers within Belgium. Consequently, the FSMA ordered Binance to cease providing any services in Belgium immediately. This move is part of the FSMA’s strategy to combat money laundering and terrorism financing by imposing sanctions on companies that violate Article 136 of Belgian Law.
Binance expressed disappointment at the FSMA’s decision, stating that they are in ongoing conversations with the regulator. The exchange is currently reviewing the FSMA’s notice and will continue to collaborate with regulators in Belgium and worldwide in compliance with their obligations.
In recent times, Binance has experienced setbacks in other European countries as well. For example, the company was forced to leave the Dutch market following an unsuccessful attempt to obtain a virtual asset service provider (VASP) license from the Dutch regulator. Additionally, Binance had to shut down its services in Cyprus after the country’s regulator, the Cyprus Securities and Commission (CySEC), placed the company “under examination for application for deregistration.”
Currently, Binance is registered and operates in six European countries, including France, Italy, Spain, Poland, Sweden, and Lithuania. However, French authorities are investigating the exchange for reportedly providing digital asset services in an “illegal” manner.
In light of the news about the FSMA’s decision, the Binance Coin or BNB cryptocurrency has gained around 0.55% of its value, rising from $241.79 on June 23 to $245.16 on the morning of June 24, as reported by CoinMarketCap. In the past week, however, BNB has seen minor losses, down by 0.19% from highs of $248 on June 18.
While the recent crackdown on Binance in Belgium and other European countries might seem concerning, it demonstrates the growing focus on regulatory compliance within the cryptocurrency industry. As a result, these developments could lead to more robust and transparent markets. However, users and investors should keep a close eye on such regulatory actions and how they might impact the broader crypto market moving forward.
Source: Cryptonews
