The Belgian Financial Services and Markets Authority (FSMA) has ordered popular cryptocurrency exchange Binance to stop providing crypto services in the European nation.

The FSMA stated in a June 23 notice that by Binance offering crypto-related services in Belgium, which is regarded as a country which is not a member of the European Economic Area (EEA), the major cryptocurrency exchange was violating Belgian laws on Anti-Money Laundering and Combating the Financing of Terrorism.

Hence, the financial watchdog ordered Binance to cease all crypto services in Belgium “with immediate effect”. This includes the provision of a virtual crypto exchange as well as custody wallet services. The FSMA states that Binance controlled around 19 companies outside the EEA which were involved in its operations and/or technical support that did not appear in the terms & conditions which users in Belgium were reading when signing up for the exchange’s services.

While the financial watchdog attempted “several requests for information” from Binance, they deem Binance’s response as unsatisfactory with regards to the identification of the services its companies provided.

“In spite of the opportunities offered to Binance on several occasions, the latter has failed to demonstrate, with due documentation and proof, that the exchange services between virtual currencies and legal currencies and the custody wallet services that it offers and provides within Belgium are carried out by means of a legal entity governed by the law of another member state of the European Economic Area that is duly authorized by its home member state to carry out these activities, including within Belgium,” stated the FSMA.

Sources:

https://cointelegraph.com/news/belgian-financial-regulator-orders-binance-cease-virtual-currency-services

https://www.reuters.com/technology/binance-ordered-stop-all-digital-currency-services-belgium-2023-06-23/

https://cryptobriefing.com/binance-ordered-halt-belgian-services-immediately/

https://www.fsma.be/en/news/fsma-orders-binance-cease-immediately-all-offers-virtual-currency-services-belgium