The Belgian Financial Services and Markets Authority (FSMA) has demanded an immediate shutdown of all cryptocurrency services offered by Binance, the global cryptocurrency exchange and blockchain platform.
According to a statement from the FSMA on June 23, the order comes after the FSMA raised concerns about Binance’s offering of virtual and legal currency exchange services and custodial wallet services in Belgium, which were found to originate from countries outside the European Economic Area. (HONOR).
This is prohibited by Belgian law and violations of this prohibition may result in criminal sanctions related to money laundering and terrorist financing.
The 27 companies allegedly involved in the operational and technical aspects of Binance’s offering, 19 of which are outside the EEA, have the required legal documentation and evidence of their EEA-based legal entities authorized to provide such services in Belgium offer, not provide.
According to the statement, Binance was unable to verify that their services were performed in Belgium by entities governed by the law of another EEA member state and authorized by their home member state. The FSMA therefore ruled that Binance’s activities in Belgium are in violation of this prohibition and has ordered Binance to cease these activities with immediate effect.
Return of keys, belongings
In addition to the shutdown, the FSMA has also demanded that Binance take immediate action to return all cryptographic keys and virtual currencies held on behalf of Belgian customers. It insisted that these assets should be returned directly to the customers or transferred to entities subject to the law of an EEA member state, with Binance ensuring secure transfers.
The public prosecutor of Brussels has been warned about possible criminal offenses.
Binance has faced a series of setbacks in its European operations. The UK subsidiary, Binance Markets Limited, canceled its registration with the country’s Financial Conduct Authority (FCA), while Binance also announced its exit from the Dutch market due to a failed registration as a virtual asset service provider (VASP). In July 2022, it was also fined €3.3 million in the Netherlands for unlicensed activities.
The exchange has been under investigation by French authorities since February 2022 over allegations of “aggravated money laundering” and operating without a license in the country between 2020 and 2022.
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