Binance, the prominent cryptocurrency exchange, has been instructed by Belgium’s top markets regulator to immediately halt its crypto services for local customers. The Financial Services and Markets Authority (FSMA) issued a notice on Friday, alleging that Binance had been offering and providing exchange services and custody wallet services in Belgium from countries outside the European Economic Area, which violates the country’s prohibition.
According to the notice, the FSMA has directed Binance to cease all such services in Belgium with immediate effect. This latest regulatory action adds to the ongoing challenges faced by Binance, as the exchange continues to combat allegations of securities law violations by the U.S. Securities and Exchange Commission (SEC). Furthermore, French authorities have initiated an investigation into the activities of Binance. Consequently, Binance has already withdrawn from markets within the European Economic Area, including the Netherlands and Cyprus, due to regulatory concerns.
The FSMA’s order highlights the importance of adhering to legal requirements and upholding the rules and regulations set forth by the European Economic Area. Binance, a well-known player in the cryptocurrency industry, is now confronted with multiple regulatory hurdles in different jurisdictions. The allegations by the U.S. SEC and the investigation by French authorities have further intensified the scrutiny surrounding the exchange.
The cease of crypto services in Belgium signifies a significant blow for Binance, as it limits its reach in the European market. The FSMA’s action serves as a reminder to other crypto exchanges to ensure compliance with local regulations and to carefully evaluate their operations within different jurisdictions.
As the crypto industry continues to evolve, regulatory oversight and compliance are becoming increasingly crucial for exchanges to maintain a sustainable and trusted reputation. Binance’s encounter with the FSMA’s order in Belgium underscores the challenges faced by exchanges in navigating the complex landscape of global regulatory frameworks.
