Binance halted crypto services in Belgium due to regulator’s intervention.
Source: AdobeStock / prima91
The Financial Services and Markets Authority (FSMA), which is the financial regulator in Belgium, has required the cryptocurrency exchange Binance to stop offering its services in the country. The FSMA alleges that the exchange has violated the law by serving Belgian customers from countries outside the European Economic Area (EEA).
The FSMA stated that “Binance is offering and providing exchange services in Belgium between virtual currencies and legal currencies, as well as custody wallet services, from countries that are not members of the European Economic Area. The FSMA has therefore ordered Binance to cease, with immediate effect, offering or providing any and all such services in Belgium.”
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The statement also noted that companies from countries outside the EEA are prohibited from offering exchange services between virtual currencies and legal currencies to customers within Belgium.
The FSMA is accusing the exchange of violating Article 136 of the Belgian Law and thus imposing sanctions to prevent money laundering and terrorist financing.
A spokesperson from Binance said in a statement to blockchain: “We are disappointed to learn that the FSMA has come to this decision despite our ongoing conversations. 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 obligations.”
EU Authorities Are Targeting Binance
Last week, Binance had to exit the Dutch market after its unsuccessful attempt to obtain a virtual asset service provider (VASP) from the Dutch regulator. In addition, the company was also forced to close its services in Cyprus.
The Cyprus Securities and Commission (CySEC) published a statement saying that Binance was “under examination for application for deregistration.”
Binance is registered and operating in six European countries, including France, Italy, Spain, Poland, Sweden and Lithuania. However, the company is under investigation in France for allegedly providing digital asset services in an “illegal” manner.
How is the Binance Token Reacting?
In the past 24 hours, the BNB cryptocurrency has regained around 0.55% of its value since falling to $241.79 on 23 June. On the morning of 24 June, data on CoinMarketCap showed that it was trading at $245.16.
However, in the past week, the cryptocurrency has seen minor losses, down by 0.19% from highs of $248 on 18 June.
